It has been a historical day for china’s biggest chipmaker SMIC. Let’s have a look at this historical event. Its shares soared nearly 202% on its first day of trade in Shanghai. The shares sale is an important moment not only for the company but for the domestic semiconductor industry in general. Moreover, the trade war between the U.S. and China once more highlighted the importance of the semiconductor industry for the country.
China’s biggest chipmaker SMIC issued 1,685,620,000 shares at 27.46 yuan per share. SMIC was able to raise 46.28 billion yuan ($6.62 billion). This result exceeded the initial target.
People should take into account that the share sale is the biggest in mainland China in a decade. In 2010, the Agricultural Bank of China raised more than $22 billion in funds. As a reminder, it was a dual Hong Kong-Shanghai listing.
The country’s biggest chipmaker is part of the so-called service and Technology Innovation Board. The world’s second-largest economy wants to create a Nasdaq-style environment for publicly-listed tech firms.
Stocks in Asia and investors
On Thursday, stocks across the Asia Pacific fell as investors reacted to information regarding Chinese economic data.
Notably, mainland Chinese stocks led the losses among the region’s main markets. The Shanghai Composite dropped by 4.5% to about 3,210.10. Moreover, the Shenzhen Component fell 5.372% to end its trading day at 12,996.34.
Moreover, Hong Kong’s Hang Seng declined by 2% to close at 24,970.69.
Japanese stocks also fell on July 16. The Nikkei 225 fell 0.76% to close at 22,730.36. At the same time, the Topix index dropped 0.66% to close at 1,579.06. However, shares of Apple supplier Japan Display soared 8.33%.
South Korea’s Kospi index fell 0.82% to end its trading day at 2,183.76 due to the Bank of Korea’s decision. As a reminder, on Thursday, the Bank of Korea decided to change the base rate.
Moreover, Australia’s S&P/ASX 200 declined by 0.69% to end its trading day at 6,010.90.
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