HK Stock Market Move | Chip stocks rise against the market trend, Semiconductor Manufacturing International Corporation achieves record revenue for a single quarter. Morgan Stanley says there may be a supply-demand imbalance in the storage sector.

Chip stocks bucked the trend and rose. As of the time of writing, Shanghai Fudan (01385) rose by 6.09% to HK$41.48; Hua Hong Semi (01347) rose by 3.69% to HK$80.1; Solomon Systech (02878) rose by 2.17% to HK$0.47; Semiconductor Manufacturing International Corporation (00981) rose by 1.43% to HK$74.55. On the news front, Semiconductor Manufacturing International Corporation recently released its third-quarter financial report for 2025. In the third quarter, the company's overall revenue was 17.162 billion yuan, an increase of 6.9% from the previous quarter and 9.9% year-on-year, reaching a new single-quarter revenue high. The net profit attributable to the parent company was 1.517 billion yuan, up by 43.1% year-on-year and 60.64% quarter-on-quarter. Semiconductor Manufacturing International Corporation's Co-CEO Zhao Haijun stated that the outlook for the fourth quarter is not weak, with revenue guidance expected to be flat to a 2% increase compared to the previous quarter. The production line is operating at full capacity, with a gross margin guidance of 18% to 20%. In addition, there is a global shortage in the DRAM market, with downstream DRAM module prices rising and goods becoming scarce. Morgan Stanley also mentioned in its report that with the possible supply and demand imbalance in the storage sector next year, the memory chip industry will usher in a "super cycle." Against the backdrop of high market demand, the storage chip industry is beginning to experience a series of chain reactions, such as shortage, price increases, and a shift in ordering modes.