Shares Dive as US Declares Tech Embargo Against 44 Chinese Firms

Shares Dive as US Declares Tech Embargo Against 44 Chinese Firms

Liao Shumin

Date: Thu, 08/02/2018 - 16:46 / source:Yicai
Shares Dive as US Declares Tech Embargo Against 44 Chinese Firms
Shares Dive as US Declares Tech Embargo Against 44 Chinese Firms

(Yicai Global) Aug. 2 -- The US will impose a technology embargo on 44 Chinese companies, the country’s commerce department announced yesterday, Securities Times reported.

The Bureau of Industry and Security under the commerce department will most prominently target China Aerospace Science and Industry Corporation Second Academy and China Electronic Technology Group Corporation 13th Research Institute, among others.

China Electronic Technology Group, another of the firms out in the cold, has eight listed units, namely Anhui Sun Create Electronics [SHA:600990], Glarun Technology [SHA:600562], GCI Science & Technology [SHE:002544], Taiji Computer [SHE:002368], Hangzhou Hikvision Digital Technology [SHE:002415], Shanghai East-China Computer [SHA:600850], Phenix Optical [SHA:600071], and Westone Information Industry  [SHE:002268].

Their share prices all fell steeply in yesterday’s afternoon trading.

Anhui Sun Create Electronics fell to close down 3.41 percent, Glarun Technology slumped 5.90 percent, GCI Science & Technology lost 3.65 percent, Taiji Computer tumbled 5.45 percent, Hangzhou Hikvision Digital Technology shed 4.05 percent, and Shanghai East-China Computer stopped trading when it hit the exchange’s 10 percent limit down. Westone Information Industry slid 3.53 percent, while Phenix Optical, the only gainer, surged 7.85 percent.

All Chinese military firms and universities have been on the NATO national embargo list since the end of 1989, a military industry analyst with Guosen Securities noted in response to the US blacklist, adding that, after 30 years of development, China has achieved complete localization from design to testing to production of its major weapons and equipment, and thus has little relationship with foreign countries in this regard.

“The entities that are being added … have been determined by the US Government to be acting contrary to the national security or foreign policy interests of the United States,” as the official US government website the Federal Register explains their inclusion on the banned list.

Editor: Ben Armour

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Keywords: MSCI, Bureau of Industry and Security