(Bloomberg) -- A Chinese LED chipmaker surged after the U.S. removed it from a list of foreign entities requiring special checks.
Shares of Sanan Optoelectronics Co. jumped by the 10% daily limit Monday in Shanghai. The Department of Commerce removed Sanan and seven other Chinese firms from its “unverified list,” according to a June 27 release. While firms on that list aren't barred from doing business in the U.S., they may need additional licenses to buy products from U.S. entities. The decision was only reported widely in Chinese local media over the weekend.
A spokesperson for Sanan said the company will “fulfill its information disclosure duties in accordance with related regulations.” The firm never made an official announcement about being added to the blacklist.
The company set up a team in April to communicate with the U.S. authorities and apply to remove itself from the list, according to the 21st Century Business Herald. Applied Materials Inc. halted supply to Sanan that month, but resumed cooperation later even as Sanan remained on the list, the China Securities Journal reported in late April.
Sanan's gains are also part of a broader rally in China on Monday, after the world's two largest economies declared a truce in their trade war. China's technology stocks got the biggest reprieve. A CSI 300 gauge for information technology shares rose 6.3% to the highest in two months.
To contact Bloomberg News staff for this story: Amanda Wang in Shanghai at twang234@bloomberg.net
To contact the editors responsible for this story: Sofia Horta e Costa at shortaecosta@bloomberg.net, Magdalene Fung
©2019 Bloomberg L.P.
With assistance from Bloomberg
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