HK Stock Market Move | Chip stocks rose in the afternoon. Institutions say that semiconductor technology is accelerating breakthroughs and the proportion of imported chips is decreasing.

Chip stocks rose in the afternoon, as of the filing, HUA HONG SEMI (01347) rose 3.52% to 35.25 Hong Kong dollars; SOLOMON SYSTECH (02878) rose 2.22% to 0.46 Hong Kong dollars; Semiconductor Manufacturing International Corporation (00981) rose 1.62% to 44 Hong Kong dollars. On the news front, Siemens, Cadence Design Systems, and Mentor Graphics released statements that the U.S. government has lifted export controls on some chip design software to China this Thursday. Research released by Morgan Stanley in May showed that the three companies collectively held about 82% of the Chinese EDA software market last year. EDA tools are the core software for chip manufacturers in semiconductor design in various applications such as smartphones, computers, and automobiles. Shanghai Securities pointed out that under the backdrop of great power competition, the valuation system of the technology industry is expected to be restructured. Under the dual pressure of "strangulation" and "breakthrough" in the semiconductor industry, the dynamic game formed by overseas technology blockades and domestic substitution demands is driving the industry into a period of structural change, prompting Chinese companies to accelerate breakthroughs at key technology nodes. According to Li Research Semiconductor, the proportion of externally purchased chips is expected to decrease from 63% in 2024 to 42% in 2025.