Hua Hong hits 20-month low on report U.S. expanding ban on Chinese chipmakers

Hua Hong Grace Semiconductor

10/05/2022 06:30

** Shares of China's semiconductor wafers producer Hua Hong
Semiconductor Ltd  1347.HK  drop as much as 18% to HK$23.20,
their lowest since September 2020, and on course for a fifth
straight session of losses 
    ** Stock marks biggest intraday percentage fall since July
2020; stock is the biggest percentage decliner in both the Hang
Seng Tech Index  .HSTECH  and the Hang Seng sub-index on
information technology firms  .HSCIIT  
    ** The U.S. Department of Commerce is weighing a ban on
American companies selling advanced chipmaking equipment to
Chinese firms, news portal The Information reported, citing two
people familiar with the discussions  urn:newsml:reuters.com:*:nFWN2X11N8
    ** The rules would expand on an existing ban on U.S.
companies selling such equipment to China's leading chipmaker,
Semiconductor Manufacturing International Corp (SMIC)  0981.HK 
(https://bit.ly/3MdcP5O)
    ** The wider ban would affect firms, including state-backed
Hua Hong Semiconductor  1347.HK , ChangXin Memory Technologies
and Yangtze Memory Technologies Corp, and the potential ban is
in early stages and could take months to draft - The Information
    ** SMIC shares fall 3.3% to HK$14.72, lowest since April 27
    ** Hang Seng sub-index on information technology firms
 .HSCIIT  and Hang Seng Tech Index  .HSTECH  drop 4.1% each
    ** Hang Seng Composite Index  .HSCI  loses 2.3% and Hang
Seng Index  .HSI  falls 2.4%


 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))