It was a tough day for China’s largest chipmaker, but before discussing the shares of SMIC, let’s have a look at the stocks in Asia-Pacific. Interestingly, stocks in Asia-Pacific were higher on Wednesday, after an overnight bounce on Wall Street as optimism grew over the possibility of more stimulus.
Let’s start with Japan. The Nikkei 225 added 0.26% to close at 26,757.40. At the same time, the Topix index gained 0.27% to end its trading day at 1,786.83.
According to the data released by the Ministry of Finance, Japan’s exports fell 4.2% in November as compared with a year ago.
South Korea’s Kospi index gained 0.49% and Australia’s S&P/ASX 200 added 0.72%.
However, mainland Chinese stocks defied the overall trend as saw losses on the day. The Shanghai Composite fell slightly to 3,366.98. At the same time, the Shenzhen Component declined slightly to 13,751.09.
Hong Kong’s Hang Seng index added 0.97% to end its trading day at 26,640.29.
Shares of SMIC on Wednesday
Interestingly, shares of Apple suppliers in Asia-Pacific were higher, after a Nikkei report that the tech giant will increase iPhone production by about 30% in the first half of 2021.
Importantly, in Taiwan, shares of Taiwan Semiconductor Manufacturing Company added 1.59%.
Let’s get back to the shares of China’s largest chipmaker SMIC. It is worth noting that Hong Kong-listed shares of SMIC fell 4.94% on Wednesday. Moreover, the company’s Shanghai-listed shares dropped about 5.5%.
Index provider MSCI made an important announcement. According to the announcement, SMIC’s Hong Kong-listed stock was among a list of securities set to be deleted from its global investible market indexes.
The country’s largest chipmaker was aware that co-CEO Mong-song Liang intents to resign, according to a filing to the Shanghai stock exchange.
It is not surprising that the coronavirus pandemic remains one of the most discussed topics in the world. Governments are working hard to minimize the impact caused by the coronavirus pandemic. Nevertheless, it won’t be easy to solve all the problems created by the pandemic in a short period of time. For example, in the case of the airline industry, it could take several years to return to pre-coronavirus levels. Lawmakers in the U.S. should work harder to reach an agreement, as without a stimulus package it would difficult to help people affected by the pandemic. Some of them are still looking for a job and lawmakers from parties should join to reach a deal.