HK Stock Market Move | Chip stocks rose in the afternoon, with open-source RISC-V attracting market attention. Domestic chip alternatives benefit from the local AI wave.

Chip stocks rose in the afternoon, as of the deadline, SHANGHAI FUDAN (01385) rose 6.3% to HK$26.15; SOLOMON SYSTECH (02878) rose 1.85% to HK$0.55; HUA HONG SEMI (01347) rose 2.1% to HK$34.1; Semiconductor Manufacturing International Corporation (00981) rose 1.75% to HK$52.3. On the news front, on February 28th, the 2025 Xuantie RISC-V Ecological Conference was held in Beijing. Academician Ni Guangnan of the Chinese Academy of Engineering pointed out at the conference that the open source model helps RISC-V build an inclusive, collaboratively innovative global ecosystem, becoming a new engine for the transformation of the chip industry. It is reported that RISC-V is regarded as an important open source architecture for the AI era. In addition, there were market rumors at noon today that China will issue guidelines to encourage the national use of open source RISC-V chips. Dongguan Securities stated that the release of DeepSeek-R1 accelerates the landing of AI technology in multiple application scenarios, which has a positive impact on the long-term growth of computing power demand. Domestic chip companies such as Huawei HiSilicon and HiSilicon are expected to accelerate the promotion of domestic computing power control by adapting DeepSeek, in order to combat the challenges of overseas export controls. Guotai Junan Research believes that as the AI competition intensifies and the industry accelerates development, semiconductor manufacturing is currently a major bottleneck in China's AI industry and is expected to gradually break through as the industry chain matures. Semiconductor manufacturing and packaging testing companies are expected to benefit from the huge domestic market demand, and it is recommended to increase holdings in Semiconductor Manufacturing International Corporation, HUA HONG SEMI, and others.