China’s top semiconductor companies lost A$13.68 in market value overnight, as new US export controls come into play.

The new rules restrict the sale of chips made with US technology, unless an export licence is obtained.

In addition, American citizens or companies are banned from working with Chinese chipmakers without “explicit approval” and cannot export manufacturing equipment that would allow China to develop its own production lines.

After the export controls were announced, Semiconductor Manufacturing International Corp, China’s largest chipmaker, dropped 4 per cent on the Hong Kong stock market.

Hua Hong Semiconductor fell 9.4 per cent, while Shanghai Fudan Microelectronics plummeted by a massive 20.2 per cent.

Naura Technology, ACM Research Shanghai, and Advanced Micro-Fabrication Equipment also suffered losses.

The impact was felt globally, with the Philadelphia Stock Exchange Semiconductor index down more than 6 per cent.

Wall Street traders tell the Financial Times that Japanese, South Korean and Taiwanese markets will see a hit once they return from national holidays today.