Hong Kong stocks climb from 2-month low as Beijing’s ban on Micron Technology propels rally in Chinese chip makers
- The Chinese government said Micron’s products posed a national security risk and would be banned from sale to information infrastructure operators
- China’s Semiconductor Manufacturing International Corporation and Hua Hong Semiconductor surged as traders piled in to local microchip firms
Hong Kong stocks climbed from a two-month low on Monday as Beijing’s ban on Micron Technology propelled a rally in Chinese chip makers.
“Micron’s business in China may be affected, and customers will shift to other domestic or foreign suppliers,” Citic analyst Xu Tao said in a note on Monday, adding that he’s optimistic about investment opportunities in the memory chip industry as “domestic replacement” accelerates.
Elsewhere, China’s one-year loan prime rate (LPR) was kept unchanged at 3.65 per cent on Monday, according to the website of the Chinese central bank.
Other major Asian markets were mixed early on Monday. South Korea’s Kospi jumped 0.8 per cent and Japan’s Nikkei 225 jumped 0.9 per cent, while Australia’s S&P/ASX 200 rose retreated 0.2 per cent.