HK Stock Market Move | Chip stocks are generally rising, with SMIC and Huahong set to disclose their second quarter financial reports soon. Institutions say the trend towards self-reliance and controllability is irreversible.

Chip stocks generally rose. As of press time, HUA HONG SEMI (01347) rose by 4.62%, to 45.7 Hong Kong dollars; BATELAB (02149) rose by 3.82%, to 59.8 Hong Kong dollars; HG SEMI (06908) rose by 3.64%, to 0.57 Hong Kong dollars; Semiconductor Manufacturing International Corporation (00981) rose by 2.09%, to 53.7 Hong Kong dollars. On the news front, US President Trump said on Wednesday that he would impose a 100% tariff on imported chips and semiconductor products, but if manufacturers choose to produce related products in the US, they will not be subject to tariffs. Also worth noting, Semiconductor Manufacturing International Corporation and HUA HONG SEMI will announce their second-quarter financial reports today. Soochow previously pointed out that Semiconductor Manufacturing International Corporation and Hua Hong Semiconductor gave lower Q2 performance guidance due to concerns about the decline in national subsidies. However, based on the current downstream demand and the capacity utilization levels of the two companies, the bank believes that both companies can beat the guidance for Q2 performance, with marginal prosperity maintained. With the release of new national subsidy policies in Q3, it is expected to further boost prosperity, and the prospects for the semiconductor foundry industry look positive. In addition, the bank believes that in the background of continuing US regulations, the trend of self-controllability is irreversible and unchangeable.