Semi-conductor Manufacturing International Corporation (SMIC), the largest contract chipmaker in China, has filed for a listing in Shanghai.
The company is already listed on the Hang Seng stock exchange in Hong Kong. However, with this additional move it hopes to raise a further 20bn yuan ($2.8bn, £2.2bn).
This is the latest development in what has been a worsening of trade relations between the United States and China since the Covid-19 crisis undid the goodwill of the initial phase-one trade agreement signed in January.
Last month, the United States moved to close loopholes through which technology produced with the help of American intellectual property could be supplied by third parties to Chinese tech firms, such as Huawei Technologies.
As the jewel in the crown of the Chinese tech boom, Huawei was a favourite target of the United States during the trade war which depressed global growth throughout 2019. The amended regulations forced Huawei's largest provider of chips, the Taiwan-based SMIC, to suspend any further contract with the company.
Over the weekend, in retaliation to such measures and in reaction to the White House’s vocal opposition to new national security laws in Hong Kong, the Chinese government ordered a halt on US farm purchases. This move particularly targets President Donald Trump’s electoral heartland.
Having already invested $2.2bn in SMIC in March, Chinese authorities will hope that this latest listing will strengthen the nation’s technological manufacturing capacity, should a full-scale trade war reignite.
SMIC closed Tuesday trading up 2.86 per cent at HKD 18.70.