Chinese chip stocks rally on reports of less strict US export restrictions, boosting tech gains.

From Investing.com: 2024-11-28 23:17:31

Shares of major Chinese chipmaking firms surged in Shanghai and Hong Kong after reports of less strict U.S. export restrictions on Beijing. Semiconductor Manufacturing International Corp. led the gains, rising over 4% in Hong Kong. Other chipmakers like HG Semiconductor and Hua Hong Semiconductor also saw increases between 3% and 4.5%.

Sanhe Tongfei Refrigeration and Shanghai Zhangjiang Hi-Tech Park Development also rose between 1% and 2% in Shanghai. Tech gains bolstered broader Chinese markets, with the Shanghai Composite and Hang Seng Index rising between 1% and 2%.

Bloomberg reported the Biden administration preparing stricter restrictions on AI technology and semiconductor sales to China. However, the measures are expected to be less severe than initially anticipated, providing relief to Chinese markets. The U.S. plans to add fewer Chinese companies to an export restriction list.

Export restrictions imposed in 2023 prevented chipmakers like NVIDIA from selling advanced AI chips to China. Nvidia and others fear more restrictions could impact sales. U.S.-China trade tensions may escalate as Trump assumes office, threatening trade tariffs against China.



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