HK Stock Market Move | Semiconductor stocks collectively rise, self-controllable expected to accelerate continuously, institutions optimistic about consumer electronics driving semiconductor demand.

Semiconductor stocks collectively rose, as of the time of writing, HG SEMI (06908) rose by 11.11%, to 0.6 Hong Kong dollars; Semiconductor Manufacturing International Corporation (00981) rose by 5.25%, to 33.1 Hong Kong dollars; HUA HONG SEMI (01347) rose by 3.89%, to 21.35 Hong Kong dollars; SOLOMON SYSTECH (02878) rose by 3.33%, to 0.465 Hong Kong dollars; SHANGHAI FUDAN (01385) rose by 1.28%, to 14.22 Hong Kong dollars. On the news front, it was reported that the Biden administration plans to implement a new round of restrictions on the export of artificial intelligence chips from companies such as Nvidia before leaving office. Sources said that the new regulations will set three levels of restrictions on chip transactions and could be announced as early as Friday. Earlier on January 3rd, the US Department of Commerce announced the addition of 11 Chinese entities to the Entity List. Guokai Securities believes that semiconductors are an important area of policy in the competition for technology, and the continuous strengthening of policy will accelerate the process of localization. The competition in the technology field may further intensify in the future, and the demand for achieving high-level self-reliance in technology is particularly urgent. Tianfeng pointed out that subsidies for new purchases of products such as smartphones may drive semiconductor demand. It is expected that more regions across the country will include smartphones and other products in the subsidy scope, and with the background of AI enhancing the user experience of new products, it is expected that subsidies for new purchases will accelerate consumer upgrades. AI terminals that are preferred by consumers are expected to become a new hot application for semiconductors, and it is recommended to pay attention to the increase in demand for chips related to smartphones/tablets/smart watches and bracelets. The urgent demand for independently controllable semiconductors continues, and investment opportunities in the field of domestic semiconductor equipment materials/EDA/IP are still promising.