The Chinese government said Micron’s products posed a national security risk and would be banned from sale to information infrastructure operators
China’s Semiconductor Manufacturing International Corporation and Hua Hong Semiconductor surged as traders piled in to local microchip firms
Hong Kong stocks climbed from a two-month low on Monday morning as Beijing’s ban on Micron Technology propelled a rally in Chinese chip makers.
The Hang Seng Index rose 1.5 per cent to 19,733.63 as of 10.55am local time, while the Hang Seng Tech Index gained 2.3 per cent, and the Shanghai Composite Index, mainland China’s benchmark, added 0.4 per cent.
China’s chip champion Semiconductor Manufacturing International Corporation jumped 1.4 per cent to HK$21.10 while Hua Hong Semiconductor surged 2 per cent to HK$27.55 as traders piled in to local microchip firms.
Internet search operator Baidu jumped 3.2 per cent to HK$123.80, e-commerce giant Alibaba gained 1.9 per cent to HK$84 and JD.com added 2.9 per cent to HK$141.20. Electric car maker BYD gained 3.3 per cent to HK$252 and NIO jumped 5.8 per cent to HK$65.40. While property developer Longfor Group climbed 3.3 per cent to HK$17.92.
In the latest flare-up of tensions between the two economic giants, the Chinese government said on Sunday that US memory chip company Micron Technology’s products posed a national security risk and would be banned from sale to China’s key information infrastructure operators.
Elsewhere, Hong Kong Exchanges and Clearing (HKEX), operator of the city’s bourse, will introduce yuan share trading from June 19. Securities traded through the new counters will be of the same class and their holdings will be transferable without a change in beneficial ownership, HKEX said.
Other major Asian markets were mixed early on Monday. South Korea’s Kospi jumped 0.8 per cent, while Australia’s S&P/ASX 200 rose retreated 0.2 per cent. Japan’s Nikkei 225 was little changed.
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