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SMIC's Hong Kong shares tumble after US tightens export restrictions

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Hong Kong shares of Semiconductor Manufacturing International Corporation (SMIC) fell more than 7 per cent on Monday after the United States imposed restrictions on exports to China's biggest chip maker, citing a risk of military use.

[HONG KONG] Hong Kong shares of Semiconductor Manufacturing International Corporation (SMIC) fell more than 7 per cent on Monday after the United States imposed restrictions on exports to China's biggest chip maker, citing a risk of military use.

SMIC shares fall as much as 7.9 per cent to HK$17.12 (S$3.04), the lowest since May 29. The stock was last down 6.7 per cent.

SMIC said it had not received any official notice of the restrictions and said it has no ties with the Chinese military.

Suppliers of certain equipment to SMIC will now have to apply for individual export licences, according to a letter from the Commerce Department dated Friday and seen by Reuters.

REUTERS

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