HK Stock Market Move | Hua Hong Grace Semiconductor (01347) shares surged more than 8% in early trading. Issuance of shares to purchase 97.4988% equity of Huali Micro has obtained approval from the China Securities Regulatory Commission.

Hua Hong Grace Semiconductor (01347) rose more than 8% in morning trading. As of the time of writing, it was up 8.22% at 201.4 Hong Kong dollars, with a transaction volume of 3.763 billion Hong Kong dollars. In terms of news, Hua Hong Grace Semiconductor has received approval from the China Securities Regulatory Commission to issue a total of 191 million shares to four trading parties, including Huahong Group, Shanghai Integrated Circuit Fund, Dajijin Phase II, and China Investment Leading Fund, to purchase a total of 97.4988% equity in Huali Wei. The company has also been approved to raise supporting funds of up to 7.556 billion yuan through the issuance of shares. Upon completion of this transaction, Huahong Company will have full control over Huali Wei. Huahong Company stated that through this transaction, the listed company will further enhance its 12-inch wafer foundry capacity. The two parties' complementary process platforms can achieve deep synergy, jointly building a wafer foundry and supporting services covering a wider range of applications and more complete technical specifications, providing customers with a variety of technical solutions and enriching the product system. The two parties are expected to achieve synergies in process optimization, yield improvement, device structure innovation, etc., accelerate technological innovation iteration, and jointly enhance their technological barriers and core competitiveness in the fields of logic process and specialty process.