By Sherry Qin
Semiconductor Manufacturing International Corp.’s Shanghai-listed shares plunged, after China’s largest chip maker unveiled a plan to issue shares to take full control of a unit, raising share-dilution concerns.
SMIC’s Shanghai-listed shares declined as much as 12% early Tuesday before paring losses to be down 8.8% at the midday break, outpacing the decline in the benchmark stock index. The chip maker’s stock shed as much as 3.7% in Hong Kong before erasing losses to rise 0.8%.
SMIC said in late August that it was seeking to buy the shares in Semiconductor Manufacturing North China (Beijing) Corp. that it didn’t already own. It has a 51% stake in the unit.
The chip maker said it would acquire the shares from state investors such as the National Integrated Circuit Industry Investment Fund and the Beijing Semiconductor Manufacturing and Equipment Equity Investment Center.
SMIC’s A shares had been…
