HK Stock Market Move | Semiconductor stocks rose in morning trading, with Semiconductor Manufacturing International Corporation (00981) up more than 3% and HUA HONG SEMI (01347) up more than 2%.

In the morning session, semiconductor stocks rose, as of the time of writing, Semiconductor Manufacturing International Corporation (00981) rose 3.61% to 37.3 Hong Kong dollars; SOLOMON SYSTECH (02878) rose 3.09% to 0.5 Hong Kong dollars; HUA HONG SEMI (01347) rose 2.58% to 23.85 Hong Kong dollars; SHANGHAI FUDAN (01385) rose 0.84% to 14.44 Hong Kong dollars. On the news front, on the evening of January 13, the US Department of Commerce issued a temporary final rule called the "Artificial Intelligence Dissemination Framework," implementing new control measures on the export of advanced computing chips and closed-source AI models; on January 15, the Netherlands announced an expansion of the export control range for semiconductor-related items. CITIC SEC released a research report stating that US restrictions continue to drive domestic alternatives for AI computing power and advanced processes. CITIC SEC estimates the market space for domestic AI computing chips to be around $30 billion, and continues to recommend related domestic foundries, AI computing chip designs, semiconductor equipment, and advanced packaging industry chains. Yesterday, the Ministry of Commerce stated that the domestic chip industry has reflected that the Biden administration has provided a significant amount of subsidies to the chip industry recently. US companies have gained unfair competitive advantages as a result, and have been exporting related mature process chip products to China at low prices, harming the legitimate rights and interests of China's domestic industries. Concerns from the domestic industry in China are normal, and they have the right to file for trade remedy investigations. The investigating authorities will review the applications and demands of the domestic industry in accordance with relevant Chinese laws and regulations, following WTO rules, and will initiate investigations in accordance with the law.