HK Stock Market Move | Semiconductor Manufacturing International Corporation (00981) fell more than 4% in the afternoon. HSBC says stock price has not reflected negative factors, wafer factories may lower pricing in the second half of the year.

Semiconductor Manufacturing International Corporation (00981) fell more than 4% in the afternoon, dropping 3.76% to HK$46.1 as of press time, with a turnover of HK$6.835 billion. On the news front, HSBC downgraded its rating on Semiconductor Manufacturing International Corporation's H shares from "hold" to "reduce", with the target price raised from HK$26.47 to HK$35. The bank believes that the current stock price does not reflect pricing pressures, tariff impacts, or weak visibility in short-term demand. HSBC pointed out that the expansion of secondary wafer foundries may lead to oversupply, and production capacity utilization has not reached full capacity yet. In addition, competitors may adjust pricing following TSMC. The bank expects Chinese wafer fabrication factories to make slight price adjustments to maintain their pricing advantage and improve production capacity utilization. The bank's scenario analysis shows that pricing will decrease by 5 to 15% in the second half of 2025, with average profits lowered by 7 to 20% compared to the bank's basic forecast.