A rally in major chipmakers pushed Hong Kong's tech gauge higher on Tuesday, defying a weaker trend in mainland Chinese markets that were weighed down by disappointing economic data.
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Hang Seng Tech Index Rises Over 1% as Chipmakers Surge
Hong Kong’s Hang Seng Tech Index jumped more than 1% on Tuesday, reversing an earlier decline as investors piled into major Chinese semiconductor stocks. The move was led by Semiconductor Manufacturing International Corp. (0981.HK), which surged over 7%, and Hua Hong Semiconductor (1347.HK), which climbed more than 6%.
The rally in Hong Kong-listed chipmakers contrasted sharply with their mainland-listed counterparts and the broader Chinese market. In Shanghai, SMIC’s A-shares (688981.SH) fell 1.2%, while Hua Hong’s A-shares (688347.SH) dropped 1.5%. The divergence came as China’s three major growth drivers—industrial production, retail sales, and fixed-asset investment—all missed expectations for April, weighing on sentiment in the A-share market.
The broader Hang Seng Index traded flat, while mainland China’s Shanghai Composite Index closed down 0.1% at 4,131. The rally in specific Hong Kong tech names suggests investors may be selectively buying into sectors they believe have been oversold or have strong long-term potential, despite the weak macroeconomic backdrop. The gains in SMIC and Hua Hong alone contributed significantly to the tech index's reversal.
The divergence highlights a potential shift in investor focus, with international capital flowing into Hong Kong-listed Chinese tech giants even as domestic sentiment remains cautious. The performance of these semiconductor leaders is seen as a bellwether for China's push for technological self-sufficiency, and Tuesday's rally could signal renewed confidence in the sector's ability to navigate global competition and domestic economic headwinds.
This article is for informational purposes only and does not constitute investment advice.
[1] Hang Seng Tech Index turns positive, SMIC rises over 7%, Hua Hong Semiconductor up over 6%[2] Hang Seng Composite Index[3] The surge in storage capacity expansion and chip price increases has driven the index of the Tianhong Sci-Tech Chip Design ETF (589070) up by over 3%, with a real-time turnover rate reaching 28%. - 富途牛牛[4] CCB (Asia): Account Openings Surge 10x During Labor Day Golden Week; Securities Account Penetration Doubles - AASTOCKS.com[5] Three Major Indices Slip 0.1%-0.4%; SEMIGHT INSTRUMENTS (688808.SH) Becomes New "Top-Priced A-Share" - AASTOCKS.com
