|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||8.81 - 8.85|
|52 Week Range||8.39 - 11.21|
|Beta (5Y Monthly)||0.82|
|PE Ratio (TTM)||3.89|
|Forward Dividend & Yield||0.64 (7.33%)|
|Ex-Dividend Date||Jul 01, 2020|
|1y Target Est||N/A|
(Bloomberg) -- Semiconductor Manufacturing International Corp. surged more than 200% during its Shanghai debut following a stock offering that is set to be China’s largest in a decade.The Shanghai-based chipmaker climbed to 82.92 yuan on its first day of trading in the Shanghai Stock Exchange’s STAR market after initially selling shares at 27.46 yuan apiece. SMIC will raise as much as 53.2 billion yuan ($7.6 billion) if it fully exercises a greenshoe option, which would make it the largest mainland stock sale since Agricultural Bank of China Ltd.’s 68.5 billion yuan Shanghai initial public offering in 2010.SMIC’s mainland listing comes amid intensifying competition between the U.S. and China for global tech supremacy. As the country’s No.1 contract manufacturer of chipsets, SMIC plays an important role in Beijing’s ambitions of becoming self-sufficient in semiconductor production following efforts by the Trump administration to curtail access by Chinese companies to key components.Proceeds from the share sale will be used to develop next-generation chipmaking technologies as SMIC seeks to catch up to rivals like Taiwan Semiconductor Manufacturing Co., which makes chips for Apple Inc. and Huawei Technologies Co.’s most advanced smartphone models. TSMC, the world’s largest contract chipmaker, is ready to commercialize 5 nanometer technology, two generations ahead of SMIC’s capabilities.China Integrated Circuit Industry Investment Fund, Singapore’s sovereign fund GIC Pte and the Abu Dhabi Investment Authority are among institutional investors that participated in SMIC’s share offering.SMIC’s shares in Hong Kong fell 22% Thursday, the biggest drop since its listing in 2004. Those shares had tripled this year in anticipation of the Shanghai listing.“SMIC has surged multiple times over a short period of time,” Kenny Wen, strategist with Everbright Sun Hung Kai Co., said by phone. “We see investors rush to profit-taking once the listing is completed.”(Updates with Hong Kong trading in penultimate paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Chinese state lenders are revamping contingency plans in anticipation of U.S. legislation that could penalise banks for serving officials who implement the new national security law for Hong Kong, sources at five state financial institutions said. In worst-case scenarios under consideration by the Bank of China <601988.SS> <3988.HK> and Industrial and Commercial Bank of China (ICBC) <601398.SS> <1398.HK>, the lenders are looking at the possibility of being cut off from U.S. dollars or losing access to U.S. dollar settlements, two sources said.
(Bloomberg) -- Semiconductor Manufacturing International Corp. is preparing to raise as much as $7.5 billion via mainland China’s largest stock sale in a decade, a big cash infusion for a chipmaker Beijing’s counting on to reduce reliance on American technology.China’s top homegrown chipmaker could sell as much as 53.2 billion yuan of shares, according to a Sunday filing with the Shanghai Stock Exchange. In May, analysts estimated a Shanghai listing could fetch somewhere in the $3 billion range. The offering would be the largest since Agricultural Bank of China Ltd.’s 68.5 billion yuan initial public offering in 2010. SMIC’s Hong Kong stock jumped 21% to a record Monday, racking up its biggest gain since 2009 after mainland bourses surged.China’s biggest contract manufacturer of chipsets represents a major piece of Beijing’s vision to create a self-reliant and world-class semiconductor industry, particularly as Washington tightens restrictions on sales of silicon and software to the nation. SMIC plans to use the stock-sale proceeds to develop next-generation chipmaking to try and compete with Intel Corp. and Taiwan Semiconductor Manufacturing Co. Like TSMC, SMIC is a so-called foundry that helps fabricate chips based on other companies’ designs, and could prove key to Huawei Technologies Co. if Washington follows through on threats to choke off its pivotal semiconductor business.What Bloomberg Intelligence SaysSMIC benefits the most from China’s push for self sufficiency in semiconductor supply. Rising research expenses to develop next-generation production technology may be the biggest drag on profitability growth. Sales gains could be constrained by delays in acquiring fabrication tools from foreign manufacturers.\- Charles Shum, analystClick here for the research.SMIC’s shares have more than tripled in Hong Kong since March’s bottom, while the Hang Seng Index is up just 21%, on bets that trade friction with the U.S. will force Beijing to focus more on homegrown tech and products that replace imports. China’s state-backed funds pumped $2.25 billion into a SMIC wafer plant in May.The effort comes at a time the Trump administration is threatening to deny domestic companies like SMIC or Huawei access to crucial components and circuitry. SMIC’s listing is also a boost for the STAR market, which has struggled to attract major technology companies since its launch last year.The initial institutional offer for the shares was 165 times oversubscribed. China Integrated Circuit Industry Investment Fund will subscribe to 3.52 billion yuan of the offering as a strategic investor while Singapore’s sovereign fund, GIC Pte., will invest 3.32 billion yuan.(Updates with biggest gain since 2009 in the second paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.