On August 1, 2026, Hong Kong's market showed an upward trend with the Hang Seng Index turning positive in the afternoon as market hotspots rotated faster. Among these, the semiconductor sector became the brightest star today, rallying collectively in the afternoon with many stocks rising over 5%, leading all industry sectors.
Semiconductor Sector Surges Collectively in Afternoon
After the afternoon opening, the semiconductor sector suddenly moved with rapid capital inflow. By closing, the Hong Kong Semiconductor Index jumped 3.8%, significantly outperforming the Hang Seng Index. In terms of individual stocks, Semiconductor Manufacturing International Corporation (00981.HK) rose 4.32% to close at HK$45.80; Semiconductor Manufacturing International Corporation (01347.HK) rose 5.67% to close at HK$25.60; ASMPT (00522.HK) rose 3.89% to close at HK$89.45; SiTime Corporation (02878.HK) rose 6.25% to close at HK$0.34. Additionally, equipment and material-related stocks such as China Electronics Huahong Technology (00085.HK) also rose over 7%.
Individual Stock Performance Overview
- Semiconductor Manufacturing International Corporation (00981.HK) closed up 4.32% with a turnover of HK$2.86 billion, the highest in the sector.
- SMIC (01347.HK) rose 5.67%, rising for three consecutive days with a cumulative increase of over 12%.
- ASMPT (00522.HK) rose 3.89%, once breaking through the HK$90 mark during the session, hitting a new high in nearly three months.
- SiTime Corporation (02878.HK) rose 6.25%, with turnover three times larger than yesterday, showing significant attention from short-term funds.
Upside Logic: Multiple Positive Factors Resonating
From a news perspective, today's semiconductor sector surge was not accidental. According to market news, domestic semiconductor equipment has achieved major technological breakthroughs in advanced process nodes, expected to further break foreign monopolies, with market expectations for domestic substitution rising again. Meanwhile, policy signals have also been positive, with relevant departments indicating increased support for the integrated circuit industry, including tax incentives and R&D subsidies.
Additionally, the global semiconductor industry is entering a new upcycle. According to the latest data from SEMI, global foundry capacity utilization in Q2 2026 rebounded to 92%, reaching a high in nearly two years. Strong demand in consumer electronics, automotive electronics, and AI computing chips has driven significant growth in upstream equipment and material orders.
Institutional Views: Industry Prosperity Continues to Improve
Several institutions released research reports today, expressing optimism about the performance of Hong Kong's semiconductor sector. China International Capital Corporation (CICC) believes that domestic substitution is one of the strongest industry trends for the next five to ten years, and valuations of Hong Kong semiconductor leaders remain at historical medium-low levels, making this a good time to position. CITIC Securities pointed out that with exponential growth in AI computing demand, advanced chip manufacturing will become scarce capacity, with domestic foundries expected to gain more order transfers.
An anonymous foreign fund manager said: "Today's sector movement reflects the allocation behavior of long-term funds, with short-term news just acting as a catalyst. We have noticed that southbound funds have net bought semiconductor stocks for five consecutive days, indicating that mainland investors' confidence in this sector is strengthening."
Market Sentiment: Capital Returning, Risk Appetite Improving
Beyond fundamentals and policy factors, market sentiment has also clearly improved. Today's total Hong Kong market turnover increased by 15% compared to yesterday, reaching HK$180 billion. The activity in the semiconductor sector has also boosted other tech stocks, with the Hang Seng Tech Index closing up 1.2%. Notably, the semiconductor sector's rise was not uniform, with large-cap stocks outperforming small and mid-cap stocks, showing that capital prefers stocks with earnings support.
From a technical perspective, the Semiconductor Index has broken through its previous consolidation platform, with moving averages showing a bullish arrangement and MACD indicators showing a golden cross upward, basically establishing a short-term strong pattern. However, investors should note that after a significant rise, the sector may experience a pullback, and blindly chasing highs is not advisable.
Outlook: Focus on Domestic Substitution Theme
Looking at the second half of the year, we expect the semiconductor sector to have significant upside potential. On one hand, the global semiconductor market is expected to grow 15% year-on-year in 2026 to $700 billion, with China's market growth expected to exceed 20%. On the other hand, the penetration rate of domestic substitution in equipment, materials, EDA and other segments is less than 30%, leaving huge room for improvement. We suggest investors focus on the following directions:
- Foundry Leaders: Semiconductor Manufacturing International Corporation, SMIC, etc., benefiting from full capacity utilization and price increase expectations.
- Equipment and Materials: Such as Naura Technology (not yet listed in Hong Kong), but ASMPT, China Electronics Huahong Technology, etc. can be considered.
- Chip Design: Such as SiTime Corporation, Shanghai Fudan (01385.HK), etc., benefiting from the increase in domestic IC design market share.
At the same time, risk factors cannot be ignored. International trade friction may disrupt the semiconductor industry chain, and global macroeconomic fluctuations may also affect terminal demand. Investors should control positions, allocate in batches, and hold high-quality leaders with a medium to long-term perspective.
Overall, the surge in Hong Kong's semiconductor sector is the result of industry trends, policy support, and capital resonance. As interim earnings are released, companies with core competitiveness will stand out, and the sector's rally is expected to continue deepening. GP Encyclopedia will continue to track market dynamics, providing professional interpretation and strategic reference for investors.
