A SHANGHAI-LISTED LED chipmaker surged yesterday after the United States removed it from a list of foreign entities requiring special checks.

Shares of Sanan Optoelectronics Co. jumped the 10 percent daily limit in their Shanghai trading to close at 12.41 yuan (US$1.81). The U.S. 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 United States, 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 firm set up a team in April to communicate with the U.S. authorities and apply to remove itself from the list, the 21st Century Business Herald said.

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 yesterday, after the world’s two largest economies declared a truce in their trade war. (SD-Agencies)