HK Stock Market Move | Chip stocks lead the gains. Semiconductor Manufacturing International Corporation has increased prices for some of its production capacity. Institutions are optimistic about AI and autonomous controllable driving.

Chip stocks led the gains, as of the time of writing, Shanghai Fudan (01385) rose by 4.68% to 44.76 Hong Kong dollars; Semiconductor Manufacturing International Corporation (00981) rose by 4.28% to 71.85 Hong Kong dollars; Hua Hong Semiconductor (01347) rose by 3.34% to 72.65 Hong Kong dollars. On the news front, it is reported that Semiconductor Manufacturing International Corporation has raised prices for some of its production capacity by around 10%. Some companies have indicated that they expect the price increase to be implemented soon. Semiconductor industry insiders interpret that the increase in raw material prices is one of the factors for Semiconductor Manufacturing International Corporation raising prices. In addition, TSMC has confirmed the integration of 8-inch capacity and plans to shut down some production lines by the end of 2027, which may also trigger expectations of wafer factory price increases. In fact, due to strong demand, the production capacity utilization rates of Semiconductor Manufacturing International Corporation and Hua Hong Semiconductor continue to increase and are approaching full or overcapacity. CMB International believes that looking ahead to 2026, they maintain four core investment themes: 1) Structural growth driven by artificial intelligence; 2) The trend of China's semiconductor autonomy and controllability; 3) High-yield and defensive allocation; 4) Industry consolidation and mergers. Since 2024, investments driven by artificial intelligence and technological autonomy and controllability have been the top recommendations of the bank and have already achieved significant returns. Dongguan Securities believes that looking ahead to 2026, they believe that artificial intelligence will continue to be the main theme of innovation in the technology industry, and multiple links such as computing power, storage, equipment, and advanced packaging are expected to benefit.