Chinese chipmaking stocks mostly advanced on Monday after Beijing late last week opened probes into U.S. trade policy over potential discrimination and dumping.
Beijing opened two investigations– one into whether Washington discriminated against Chinese companies with its chip trade and policies, and the other into the suspected dumping of imports such as analog chips used in hearing aids, automobiles, and Wi-Fi routers.
Chinese chipmaking stocks were mostly encouraged by the development, given that it potentially entails more measures by Beijing to promote locally made chips.
Semiconductor Manufacturing International Corp (HK:0981), the country’s biggest chipmaker by volume, rose 1.4% in Hong Kong trade, while peer Hua Hong Semiconductor Ltd (HK:1347) surged 3.7%. NAURA Technology Group Co Ltd (SZ:002371) added 0.8% in Shenzhen trade, while chip testing equipment maker JCET Group Co Ltd (SS:600584) added 0.4%.
Most chipmakers were sitting on strong gains from Friday. Cambricon Technologies Corp Ltd (SS:688256), which makes artificial intelligence chips, lagged with a 3% fall, after rallying some 10% on Friday.
Beijing’s probe comes after the U.S. on Friday added 32 entities, of which 23 are Chinese, to a commerce department list of restricted trade. They accused two firms of sourcing restricted equipment for SMIC, which is sanctioned by Washington.
The development came just as high-level trade talks between the U.S. and China on Sunday, where both sides were also seen discussing the fate of ByteDance’s TikTok app, which faces a U.S. ban.
Chinese chipmaking stocks have been on a tear since early-August, as the sector was encouraged by increasing regulatory scrutiny towards U.S.-made chips, especially in AI development.
Last week, the sector was also boosted by a report that Chinese AI majors including Alibaba Group (HK:9988) were testing locally-sourced chips for future AI development.
Source :
https://www.investing.com/news/stock-market-news/china-chip-stocks-rise-as-beijing-probes-us-over-dumping-discrimination-4237880
