SMIC Photo: Xinhua

China's securities regulator on Monday officially gave approval for Chinese chip maker Semiconductor International (SMIC) and rare earth processer Earth-Panda Advance Magnetic Material to be listed on China's Sci-Tech innovation board in Shanghai, according to the regulator's official website.

"The companies and their underwriters will discuss the listing date and related prospectus with the Shanghai Stock Exchange," China Securities Regulatory Commission said.

According to media reports, SMIC - China's chip maker giant, which is expected to be the back-up supplier for Huawei amid the US crackdown - submitted its listing application on June 1, aiming to raise 20 billion yuan ($2.83 billion) from the A share market. It took less than one month to get the approval. 

If successful, it would be the first time for Earth Panda to be listed on the stock market. But SMIC has been listed on the New York stock market and Hong Kong market for more than a decade, even though it quit the New York Stock Exchange (NYSE) in 2019.

If it is successfully listed, SMIC would be another overseas-listed Chinese company to return to the Chinese market, as some US-listed Chinese companies including JD, Alibaba and Netease have chosen to be relisted on the Hong Kong Stock Exchange (HKSE) amid deteriorating relations between China and the US in recent years.

"SMIC's management and daily information disclosure has been tested in the mature overseas markets, so the quality of the pre-listing review should be guaranteed even through the process is short," securities journal jrd.com reported, citing a veteran expert from an investment bank.  

"The listing date could be as early as July," the expert said.

Founded in 2000, SMIC was listed on the HKSE and NYSE in 2004. It is one of four chip makers in the world that can produce 14 nanometer chips, according to the company.

Global Times