AMEC's Victory: Pentagon Removes Firm from Military List Boosting Shares

Shares for Advanced Micro-Fabrication Equipment surged after it was delisted from the Pentagon's controversial Chinese military companies list. Following a lawsuit against the U.S. Defense Department, AMEC and IDG Capital were both removed from the list, which impacts reputations but not immediate business operations.

Shares of Advanced Micro-Fabrication Equipment (AMEC) rose by 4.35% after news emerged that the Chinese chip equipment maker was delisted from a controversial Pentagon list. This list had accused it of ties with Beijing's military, prompting AMEC to take legal action in August.

AMEC, maintaining its compliance with global laws, vehemently denied any military affiliations and sought a court's intervention. The updated Pentagon list also saw IDG Capital, a major Chinese private equity firm, being removed without pursuing any lawsuit.

This list includes entities under scrutiny by U.S. sanctions, like Huawei and AVIC. Although listing doesn't entail immediate restrictions, it poses reputational risks and cautions U.S. businesses about potential trade dilemmas.

(With inputs from agencies.)