HK Stock Market Move | Semiconductor Manufacturing International Corporation (00981) up over 4% again, domestication process continues to accelerate, new subsidies for purchases of products such as mobile phones may stimulate demand.

Semiconductor Manufacturing International Corporation (00981) rose by over 4%, reaching 4.77% as of the time of writing, closing at 32.95 Hong Kong dollars with a trading volume of 544 million Hong Kong dollars. On the news front, it is reported that the Biden administration plans to implement a new round of restrictions on the export of artificial intelligence chips from companies like Nvidia before leaving office. Sources say that the new regulations will set three levels of restrictions on chip transactions, which could be released as soon as Friday. Guokai Securities believes that the continuous strengthening of policies in the important area of semiconductor technology competition will accelerate the process of domestication. The future competition in the technology field may further intensify, with a particularly urgent need to achieve high-level technological self-reliance. Tianfeng research report points out that subsidies for new purchases of products like smartphones may drive demand for semiconductors. The bank expects to see more regions in the country including smartphones and other products in the subsidy range. Against the backdrop of AI enhancing the user experience of new products, it is expected that subsidies for new purchases may accelerate consumer upgrades. It is recommended to pay attention to the increase in demand for chips related to smartphones/tablets/smartwatches and smart bracelets.