HK Stock Market Move | Semiconductor stocks rise sharply, HG SEMI (06908) up more than 7%, Semiconductor Manufacturing International Corporation (00981) up more than 3%.

Semiconductor stocks rose in mid-range trading. As of the time of writing, HG SEMI (06908) rose 7.55% to HKD 0.57; Semiconductor Manufacturing International Corporation (00981) rose 3.4% to HKD 27.35; SOLOMON SYSTECH (02878) rose 1.02% to HKD 0.495; SHANGHAI FUDAN (01385) rose 0.55% to HKD 14.7. Tianfeng pointed out that the urgent demand for domestic semiconductor substitution, the large market space, and the potential catalytic effects brought by external (international political instability) and internal (large factory expansion, policy support, etc.) factors to the sector. The bank predicts that domestic semiconductor equipment, materials, and EDA/IP substitution may continue to accelerate, and the investment opportunities in the sector are worth paying attention to. SMIC announced its 3Q24 financial report, showing improved capacity utilization rates, stable growth expectations for the fourth quarter, indicating that the industry may enter its peak season. Dongguan Securities stated that since 2024, driven by AI innovation and domestic substitution, the semiconductor industry has continued to recover in terms of business prospects, with sector performance growing year-on-year. Looking ahead to 2025, they continue to be optimistic about the two main themes of AI innovation and domestic substitution. On one hand, they focus on the incremental opportunities brought about by AI in the semiconductor hardware sector, represented by computing power chips, storage, and advanced packaging; on the other hand, they focus on the domestic substitution process for semiconductor equipment and core components in smartphones under external restrictions.