SMIC’s Hong Kong shares drop on export restrictions

On Monday, Hong Kong-listed shares of Semiconductor Manufacturing International Corp recorded more than a 7% drop. The decline followed after the United States implemented export-related restrictions on China’s largest chip provider over military concerns.  

After a 6.7% drop, SMIC’s shares recorded a 7.9% decline to HK$12.12 ($2.21). This came to be the company’s worst record since May 29.

The U.S. Commerce Department mandates that suppliers of the company will now have to acquire individual export licenses. However, SMIC said that it had not received any official notice of the restrictions while denying the allegations of its connection with the Chinese military.

The $6.6 billion fund raised earlier this year on Shanghai’s tech-centric STAR market will be allocated to building additional capacity for chipset production.