AXT Shares Up 7.7% Premarket; Company Late Monday Announced Tongmei, AXT's Subsidiary in China, Expects to Proceed to Immediately Seek Permits From the Applicable Chinese Authorities to Export Gallium and Germanium Substrate Products
Portfolio Pulse from Charles Gross
AXT's subsidiary in China, Tongmei, plans to immediately seek permits from Chinese authorities to export gallium and germanium substrate products. This news has led to a 7.7% premarket increase in AXT shares.
July 05, 2023 | 9:52 am
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NEUTRAL IMPACT
While not directly impacted, the iShares China Large-Cap ETF (FXI) could see some indirect effects due to AXT's announcement, as it reflects the performance of the Chinese market.
FXI, the iShares China Large-Cap ETF, could be indirectly affected by AXT's announcement. As AXT's subsidiary Tongmei is based in China and is seeking export permits, this could potentially influence the Chinese market, which FXI reflects. However, the impact is likely to be minimal as AXT is just one of many companies in the Chinese market.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
AXT's shares have risen 7.7% premarket following the announcement that its subsidiary, Tongmei, will seek permits to export gallium and germanium substrate products.
The announcement of Tongmei seeking export permits for gallium and germanium substrate products is a positive development for AXT. This could potentially open up new markets and increase revenues, which is likely the reason for the premarket increase in AXT's share price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100