01. Recently, SMIC has made rare changes: H shares once plummeted by more than 7%, and its market value has shrunk by 10 billion yuan
SMIC International announced this morning that the company was concerned about the news that the US Department of defense website had added the company to the list of Chinese military related enterprises this morning. The company is assessing the impact, so investors should pay attention to the investment risk.
In the afternoon, SMIC officially issued an announcement to respond to the above issues. Meanwhile, the companys Hong Kong shares officially resumed trading at 1:00 p.m.
After the resumption of trading, SMIC Hong Kong shares fell sharply, falling 7.43% at one time. By the end of the day, SMIC Hong Kong shares still fell 5.41%.
According to the preliminary calculation, the market value loss of SMIC A shares and Hong Kong shares dropped sharply today is about 10 billion yuan. After the big fall, SMICs current market value is still more than 200 billion yuan.
In the announcement, SMIC said it was concerned that the company was included in the list of Chinese military related enterprises by the US Department of defense.
According to the announcement, US people will be restricted from trading securities issued by SMIC and related derivatives.
The specific restrictions are as follows: after 60 days from December 4, 2020, Beijing time, American people are not allowed to buy company securities; 365 days later, American people are not allowed to trade company securities.
SMIC pointed out that the companys inclusion in the list of Chinese military related enterprises had no significant impact on the companys operation, and reiterated that the company is an independent international enterprise with stakeholders such as investors and customers all over the world. The company has been adhering to the legal and compliance operation, and comply with the relevant laws and regulations of the place of operation. The services and products have never involved in any military use, and are used for civil and commercial purposes.
SMIC said it strongly opposes the decision of the US Department of defense, which reflects the fundamental misunderstanding of the US Department of defense on the end use of its business and technology, and will continue to maintain active communication with relevant departments of the U.S. government.
SMICs sharp fall also led to other chip stocks plummeting.
Hong Kongs Huahong semiconductor fell sharply, falling more than 15% in the session, but then quickly pulled back. By the end of the day, the share price rose by 0.58%.
SMIC was listed in A-share market in July this year. Since its listing, SMIC A-share has been greatly adjusted, and SMIC Hong Kong stock has also made some adjustments during this period.
The wind chip index, which represents the trend of chip concept stocks, has been soaring in recent two years, rising 73.32% in 2019 and 42.97% again since 2020.
For example, this years listed lion micro not only has the status of sub new shares, but also has the concept of chip. After its listing, it has continued to rise. At present, its share price has increased by 1902.03% compared with the issue price, nearly 20 times.
According to Soochow securities, affected by the epidemic situation, home office and online education promote the growth of global demand for computers and tablet products, corresponding to the growth of demand for panel driven IC and power components, and the increase of safety stock of domestic chip suppliers, the global demand for 8-inch wafers continues to grow. However, in recent years, the capacity growth of global foundry factories has been slow, resulting in 8-inch wafer production capacity Serious shortage. Due to the extremely unbalanced supply and demand of silicon wafer production capacity, the price of 8-inch wafers has been raised several times. Since September, IC manufacturers such as Ming microelectronics, Fuman electronics, Jichuang north and Jingfeng Mingyuan have also raised their product prices, and the whole industry chain has started a price rise. On October 30, IC designer Lianfa issued an announcement that it would lease semiconductor equipment worth NT $1.62 billion from Fanlin, Canon and Tokyo Weiwei Kechuang to the OEM factory, which also indicated that the industry was facing a serious shortage of production capacity. Soochow Securities believes that at present, the global 8-inch wafer foundry is close to full production, and downstream demand maintains rapid growth. Under this background, domestic 8-inch wafer foundry is expected to expand production, and local equipment manufacturers will benefit directly. Source: Securities Times editor in charge: Zhong Qiming_ NF5619
Soochow Securities believes that at present, the global 8-inch wafer foundry is close to full production, and downstream demand maintains rapid growth. Under this background, domestic 8-inch wafer foundry is expected to expand production, and local equipment manufacturers will benefit directly.