(Yicai  Global) June 27 -- Shares of Dawning Information Industry, which used  to mostly buy its chips from Intel, have slumped after the Chinese  supercomputer maker confirmed that being placed on the US entity list  will impact its financial performance this year.

Dawning's  [SHA: 603019] stock price fell by the daily limit of 10 percent to  CNY36.5 (USD5.30) today, after coming back from a three-day trading  suspension.

The US ban on Dawning will have certain effects on this year's operating  income and the following business layout, the Beijing-based firm said in  a statement yesterday. Dawning has been buying 60 percent of its  semiconductors from California's Intel, and a halt will inevitably push  China to speed up its chip development, the release added, citing  Guosheng Securities. 

On June 24, the US added Dawning and four other Chinese supercomputer  companies to its entity list due to national security concerns. This  means that the firms need the US government's permission to do business  with US companies.

The US decision lacks factual basis and is not in the interest of all parties, Dawning said. The firm will actively communicate to advance understanding and to reduce the impact of the incident, it added.

Founded in 1996, Dawning develops high-performance computers and servers, as well as cloud computing and Big Data products.

Editor: Emmi Laine