HK Stock Market Move | In the afternoon, the semiconductor sector took a dive, with Semiconductor Manufacturing International Corporation (00981) falling more than 7% and HG SEMI (06908) dropping more than 4%.

In the afternoon, the semiconductor sector took a dive, as of the time of reporting, Semiconductor Manufacturing International Corporation (00981) fell by 6.18% to 39.5 Hong Kong dollars; HG SEMI (06908) fell by 4.69% to 0.61 Hong Kong dollars; SHANGHAI FUDAN (01385) fell by 2.22% to 15 Hong Kong dollars. On the news front, on January 16th, according to the China Semiconductor Industry Association, the industry has reported to the Chinese Ministry of Commerce that the domestic mature process chip industry is facing unfair competition challenges from the import of products from the United States, and there is a demand for anti-dumping and countervailing investigations. Tianfeng believes that mature process chips include analog/power/MCU chips, and with the progress of the investigation, it will further drive the market share of domestic products and prices are expected to gradually rise. Furthermore, the change in the U.S. semiconductor policy following the inauguration of the new president is worth attention. External geopolitical restrictions on China's semiconductor industry are expected to accelerate the development of the domestic industry chain, with domestic substitution likely to become a long-term trend. The urgency for domestic substitution in fields such as artificial intelligence and advanced processes is higher, presenting more opportunities for the development of the domestic industry chain.