HK Stock Market Move | Semiconductor stocks rise in early trading, Semiconductor Manufacturing International Corporation (00981) has surged nearly 4%, domestic substitution is expected to accelerate.

In the morning session, semiconductor stocks rose, as of press time, Semiconductor Manufacturing International Corporation (00981) rose 3.78% to HK$35.65; SOLOMON SYSTECH (02878) rose 3.3% to HK$0.47; HUA HONG SEMI (01347) rose 1.86% to HK$21.95; SHANGHAI FUDAN (01385) rose 1.03% to HK$13.7. On the news front, on the evening of January 13th, the US Department of Commerce issued a temporary final rule entitled "Artificial Intelligence Dissemination Framework", implementing new control measures on the export of advanced computing chips and closed-source AI models, with the main rules starting to be enforced 120 days later. CITIC SEC believes that US restrictions will continue to drive domestic substitution for AI computing power and advanced processes, estimating the market space for domestic AI computing power chips at about $30 billion, and continues to recommend related domestic foundries, computing chip design, semiconductor equipment, and advanced packaging industry chains. In addition, Goldman Sachs raised Semiconductor Manufacturing International Corporation's target price from HK$33.4 to HK$38, an increase of 13.8%, maintaining a "neutral" rating. Goldman Sachs expects that amid long-term growth in semiconductor demand in China and geopolitical risks, SMIC will show a gradually rising trend. For the fourth quarter of 2024, it is estimated that revenue will increase by 1% on a quarterly basis to $2.2 billion, with a gross profit margin of 18.5%, which is better than previous data and consistent with guidance from management.