China chip shares fall, Hong Kong index down 2%

Hong Kong shares of Chinese chipmaker SMIC fell 5% after US export restrictions took effect

Shares of China’s largest chipmaker minimum wage It fell after Washington announced new export restrictions Limits Beijing’s ability to buy and manufacture high-end chips used in military equipment.

SMIC’s stock fell as much as 5.23% before recovering slightly. Last traded 2.91% lower.

Foreign Ministry spokesman Mao Ning told a press conference on Saturday, “The United States is misusing export control measures to deter and defraud Chinese companies. Such practice is against fair competition and international trade rules.”

– Off Abigail

CNBC Pro: Porsche is now more valuable than VW: Here’s what the pros think about the automaker

A week after its stock market debut, luxury automaker Porsche’s market cap has surpassed that of its former parent Volkswagen Group.

Some fund managers are already comparing the German firm TeslaPorsche, the world’s largest electric car maker, is expected to make its best-selling Macan EV an instant hit with its electrification program.

Compared to its parent company VW, which produces nearly 10 million cars annually, Porsche produces only 300,000 cars, but Volkswagen makes a quarter of the profits.

CNBC Pro subscribers can read more here.

– Ganesh Rao

CURRENCY CHECK: The South Korean won weakened against the US dollar

CNBC Pro: Goldman says these ‘cheap’ global stocks are poised for short- and long-term success

As Europe grapples with rising electricity and gas prices, global companies focused on energy efficiency will fare better, says Goldman Sachs.

“We think energy efficiency companies could do better in the short term by focusing on energy efficiency to deal with the current energy crisis that followed the Russian invasion of Ukraine,” the analysts wrote in an Oct. 3 note.

“[And] In the long term by focusing on energy efficiency to tackle climate change and achieve ambitious ‘net zero’ goals.”

CNBC Pro subscribers can read more here.

– Weissen Don

Services activity in China contracted in September, a private survey showed

The Caixin Services Purchasing Managers’ Index stood at 49.3 in September, a steep drop from 55 in August, according to a report released on Saturday.

The 50-point mark separates growth from contraction. BMI measurements compare activity month by month.

The country’s Covid restrictions caused service activity in China to contract in September for the first time since May, the report said.

“Companies reporting lower activity often commented that the pandemic and subsequent measures to contain the epidemic limited activity and weighed on demand in September,” Caixin’s press release said.

– Off Abigail

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