SMIC (981.HK) Slumped Due to the Blacklist from the U.S.

Close up of USD vs China currency bank notes
SMIC (981), a semiconductor foundry company, could be blacklisted by the U.S. government, reported Reuters citing a Defense Department official. Today, the share prices slumped more than 15%.

Citibank said SMIC's production expansion and upgrades may "largely crease" if the company is added to a U.S. trade blacklist.

From a technical point of view, the stock opened a bearish gap and drifted lower, suggesting a strong downside momentum for the prices.

The RSI broke down its oversold level at 30, but has not displayed any reversal signal.

Bearish readers could set the nearest resistance level at yesterday's close at HK$23.90, while the support levels would be located at HK$16.00 and HK13.80.

Source: GAIN Capital, TradingVIew
Related tags: Equities China Tech Stocks

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