HK Stock Market Move | Chip stocks rally across the board Semiconductor companies intensively disclose performance pre-earnings beats. Institutions claim that localization remains the core growth logic.

Chip stocks rebound across the board, as of the time of publication, Semiconductor Manufacturing International Corporation (00981) rose by 3.59% to 40.45 Hong Kong dollars; HUA HONG SEMI (01347) rose by 2.54% to 24.2 Hong Kong dollars; CE HUADA TECH (00085) rose by 1.55% to 1.31 Hong Kong dollars; SHANGHAI FUDAN (01385) rose by 1.19% to 15.3 Hong Kong dollars. On the news front, according to a report from Shanghai Securities News, recently, A-share semiconductor companies have been disclosing their performance forecasts for 2024 intensively. Data shows that as of 6 pm on January 23, out of 161 listed semiconductor companies, 84 have released performance forecasts, with nearly sixty percent of companies expecting positive performance (including growth, turning a loss, and reducing losses). Analysis reveals that AI-driven, mass production of new products, and market recovery are the main reasons for the positive performance forecasts of semiconductor listed companies in 2024. In addition, Minsheng Securities pointed out that the core growth logic of the semiconductor industry comes from localization. In recent years, external restrictions on China's semiconductor industry have been intensifying, and there is an urgent demand for core links in the semiconductor industry chain such as advanced manufacturing, semiconductor equipment and components, and semiconductor materials to be independently controllable. Localization is expected to accelerate, especially for domestic manufacturers that are continuously breaking through in advanced manufacturing, who will encounter major development opportunities. The core sectors such as advanced manufacturing and semiconductor equipment where the localization rate urgently needs to break through are promising.