Summary of Key Points Core Viewpoint - The financing balance of the Sci-Tech Innovation Board (STAR Market) increased by 828 million yuan compared to the previous trading day, indicating a growing interest in this market segment [1]. Financing Balance - As of July 14, the total margin financing balance on the STAR Market reached 160.08 billion yuan, with a financing balance of 159.50 billion yuan and a securities lending balance of 5.87 billion yuan [1]. - The stock with the highest financing balance is SMIC, with a latest balance of 7.15 billion yuan, followed by Cambrian and Haiguang Information with balances of 3.48 billion yuan and 3.42 billion yuan respectively [1]. - A total of 334 stocks saw an increase in financing balance, while 251 stocks experienced a decrease [1]. - Notable increases in financing balance include Borui Data (59.61%), Kexing Pharmaceutical (33.99%), and Yahon Pharmaceutical (27.88%) [1]. Securities Lending Balance - The highest securities lending balance is also held by SMIC, with a balance of 23 million yuan, followed by Haiguang Information and Chipone Technology with balances of 16 million yuan and 15 million yuan respectively [2]. - A total of 142 stocks saw an increase in securities lending balance, while 130 stocks experienced a decrease [2]. - Significant increases in securities lending balance were observed in KQ Bio (140.94%), Tiande Yu (72.90%), and Diaowei (62.20%) [2]. Performance Overview - The performance of stocks with notable financing balance increases includes Borui Data (7.23%), Kexing Pharmaceutical (1.76%), and Yahon Pharmaceutical (17.32%) [2]. - The performance of stocks with notable securities lending balance increases includes ZhiJiang Bio (20.00%) and others [3]. Additional Data - The detailed financing and securities lending balances for various stocks are provided, showing a comprehensive view of the market dynamics [4].

Core Points - The announcement is regarding the change in the holdings of SMIC (Semiconductor Manufacturing International Corporation) shares by the Huaxia SSE STAR 50 ETF [1][2] - The change in holdings amounts to 399,192 shares, resulting in a total of 99,813,210 shares held, which represents 5.02% of the company's domestic total share capital and 1.25% of the total share capital [1] - The ETF aims to closely track the SSE STAR 50 Index, utilizing a full replication strategy to construct its stock investment portfolio [1][2] Group 1 - The announcement is made in compliance with the regulations set by the China Securities Regulatory Commission [1] - The change in holdings occurred on July 11, 2025, and represents a 0.02% change in the total domestic share capital [1] - The fund does not have a controlling shareholder or actual controller, and this change does not affect that status [1] Group 2 - The main shareholders of Huaxia Fund Management include CITIC Securities (62.2%), Mackenzie Financial Corporation (27.8%), and Qatar Holding LLC (10%) [1] - The ETF is listed on the Shanghai Stock Exchange and aims to minimize tracking deviation and error [1][2] - The fund's investment strategy is based on the changes in the index constituents and their respective weights [1][2]

| A | 股代码：688981 | 股简称：中芯国际 A | 公告编号：2025-016 | | --- | --- | --- | --- | | 港股代码：00981 | | 港股简称：中芯国际 | | 华夏上证科创板 50 成份交易型开放式指数证券投资基金 关于所持中芯国际集成电路制造有限公司境内股票变动 的提示性公告 信息披露义务人华夏基金管理有限公司保证本公告内容不存在任何虚假记载、 误导性陈述或者重大遗漏，并对其内容的真实、准确和完整依法承担法律责任。 重要内容提示： 本公告是根据中国证监会《创新企业境内发行股票或存托凭证上市后持 续监管实施办法（试行）》第四章第二节的规定披露的提示性公告。 本次变动数量：399,192 股。 本次变动后，华夏基金管理有限公司（以下简称"信息披露义务人"） 旗下华夏上证科创板 50 成份交易型开放式指数证券投资基金持有中芯国际集成 电路制造有限公司（以下简称"公司"或"上市公司"）境内股票 99,813,210 股，占公司境内总股本的比例为 5.02%，占公司总股本的比例为 1.25%。 华夏上证科创板 50 成份交易型开放式指数证券投资基金（以下简称"本 基金 ...

Investment Rating - The report maintains a "Recommended" investment rating for the semiconductor and semiconductor equipment industry [5]. Core Insights - The overseas AI chip index increased by 1.8% this week, with AMD and Nvidia rising by 6.2% and 3.5% respectively, while Marvell and MPS saw declines of nearly 3% [1][8]. - The domestic AI chip index rose by 1.9%, with SMIC increasing by nearly 4% and Hengxuan Technology by 2.6% [1][8]. - The Nvidia mapping index surged by 5.8%, with Changxin Bochuang and Taichengguang experiencing significant gains of nearly 20% and 12% respectively [1][8]. - The server ODM index saw a slight increase of 0.3%, with Wiwynn rising nearly 5% [1][8]. - The storage chip index fell by 0.6%, with some companies like Baiwei Storage and Taiji Industrial showing gains of nearly 3% [1][8]. - The power semiconductor index increased by 1.0%, while the A-share fruit chain index rose by 4.7% and the Hong Kong fruit chain index by 3.9% [1][8]. Market Data Summary - In 2024, domestic smart glasses sales are projected to reach 434,000 units, a year-on-year increase of 36.5%, with expectations to exceed one million units in 2025, representing a growth rate of approximately 130% [2][22]. - In May 2025, domestic smartphone shipments totaled 23.716 million units, a year-on-year decline of 21.8%, with domestic brands accounting for 19.177 million units, down 24.2% [2][23]. - In Q2 2025, global PC shipments reached 67.6 million units, reflecting a year-on-year growth of 7.4% [2][23]. - In Q2 2025, Xiaomi led the Chinese smartphone market with a 16.63% market share, followed closely by Vivo, OPPO, Huawei, and Apple [2][28][29]. Major Events Summary - The iPhone 17 Pro is expected to feature an all-aluminum body with a redesigned MagSafe magnetic circle due to the repositioning of the Apple logo [3][30]. - Samsung launched the Galaxy Z Fold 7, which features significant changes in weight and screen design [3][30]. - The first MacBook equipped with an OLED screen is anticipated to launch in 2026, starting with the MacBook Pro series [3][30]. - Apple released the third developer preview of visionOS 26 for the Vision Pro device on July 8 [3][31].

Core Insights - The article provides a snapshot of the market capitalization changes of major global technology and internet companies as of July 14, 2025, highlighting both increases and decreases in value across various firms [1]. Market Capitalization Changes - Tesla's market cap increased by 1.17%, reaching $100.98 billion [3]. - Alibaba saw a slight increase of 0.08%, with a market cap of $255.2 billion [3]. - AMD experienced a rise of 1.57%, bringing its market cap to $23.74 billion [3]. - Companies like Oracle and SAP reported declines of 1.89% and 1.75%, respectively, with market caps of $64.76 billion and $35.31 billion [3]. - Notable declines included Adobe, which fell by 2.18%, with a market cap of $15.41 billion [4]. Noteworthy Performers - PayPal showed a significant increase of 5.73%, with a market cap of $6.3 billion [6]. - SMIC reported a rise of 2.07%, reaching a market cap of $607 million [6]. - Circle Internet PNG Group had a notable increase of 7.67%, with a market cap of $463 million [7]. Overall Trends - The overall trend indicates mixed performance among technology companies, with some experiencing growth while others face declines in market capitalization [1][3].

Group 1 - The article presents the market capitalization rankings of the top 50 Chinese technology and internet companies as of July 14, 2025 [1] - The leading company by market capitalization is 台棋电 (Taiwan Semiconductor Manufacturing Company) with a valuation of 11,949.75 million [3] - Tencent Holdings ranks second with a market cap of 5,815.18 million, followed by Alibaba at 2,546.4 million [3][4] Group 2 - Xiaomi Group is ranked fourth with a market capitalization of 1,889.61 million, while Pinduoduo follows in fifth place with 1,489.35 million [3][4] - Meituan and NetEase are positioned sixth and seventh, with market caps of 929.41 million and 812.27 million respectively [3][4] - Other notable companies in the top 10 include 东方财富 (East Money) at 523.39 million and 中芯国际 (SMIC) at 476.15 million [4][5] Group 3 - The rankings continue with companies like 京东 (JD.com) at 448.31 million and 快手 (Kuaishou) at 356.11 million [4][5] - Baidu, 理想汽车 (Li Auto), and 贝壳 (Beike) are also included in the top 15, with market caps of 298.84 million, 296.08 million, and 221.89 million respectively [4][5] - The list concludes with 云费智联 (Yunfei Zhili) at 41.76 million, marking the 50th position [6]

Investment Rating - The report upgrades SMIC's H/A shares to Buy/Buy from Reduce/Hold, with target prices raised to HKD64.00/RMB148.00 from HKD35.00/RMB92.00, implying upside of approximately 46%/73% [4][8]. Core Insights - SMIC is positioned to benefit from the localization trend in China, emerging as a key player in the semiconductor industry despite facing near-term ASP headwinds due to specific equipment yield issues [1][3]. - The company is expected to maintain margin stability in advanced nodes through a balance of pricing power and yield improvements, with an anticipated ASP premium of 57% under conservative yield assumptions [2][49]. - SMIC's market share in the China Foundry Total Addressable Market (TAM) is projected to grow from 25% in 2024, supported by a 13% capacity expansion from Q2 2024 to Q4 2024 [3][41]. Summary by Sections Financial Performance - Revenue projections for SMIC are estimated at USD 8,030 million for 2024, increasing to USD 13,210 million by 2027, reflecting a year-on-year growth of 27% in 2024 and 15% in 2025 [9][10]. - The net profit is expected to rise from USD 493 million in 2024 to USD 1,918 million in 2027, with EPS estimates increasing from USD 0.06 to USD 0.25 over the same period [9][10]. Valuation Metrics - The report raises the target price-to-book (P/B) multiples for SMIC to 2.9x/7.2x, reflecting a premium due to its strategic positioning and expansion into advanced nodes [4][64]. - The expected EV/sales ratio is projected to decrease from 5.9 in 2024 to 3.5 by 2027, indicating improving valuation as revenue grows [11]. Market Dynamics - The ongoing geopolitical tensions are expected to reinforce China's push for self-sufficiency, benefiting SMIC as it becomes the preferred foundry in China [21][39]. - The report highlights that despite short-term ASP declines, SMIC is likely to emerge as a major beneficiary of the localization trend, with expectations for improved ASP conditions in the second half of 2025 [38][41]. Capacity and Utilization - SMIC's capacity in advanced nodes is projected to reach 25K-30K wafers per month by the end of 2025, with utilization rates expected to improve from 86% in FY24 to 91% in FY25 [49][50]. - The company is anticipated to maintain a high utilization rate compared to peers, reaching full capacity by the first half of 2026 [22][41].

Investment Rating - The report maintains a positive investment rating for the domestic computing power and AI application sectors, highlighting significant growth potential in these areas [6]. Core Insights - A new round of AI "arms race" has commenced globally, with the release of major models like Grok4 and Kimi K2 expected to significantly boost domestic computing power demand and application ecosystems [4][10]. - The report emphasizes the importance of focusing on domestic AI computing power, particularly in chip design, advanced wafer manufacturing, and liquid cooling technologies [4]. - Various AI application sectors are highlighted, including office automation, programming, terminal AI, ERP/CRM, judicial applications, financial/taxation services, education, healthcare, and customer service [4]. Summary by Sections Market Review - During the week of July 7-11, the CSI 300 index rose by 0.82%, the SME index increased by 0.73%, and the ChiNext index saw a rise of 2.36%. The computer sector (CITIC) experienced a growth of 3.37% [2]. Industry News - Notable company developments include Zhuoyi Information's plan to reduce its shareholding by up to 2,271,445 shares, representing no more than 1.88% of total shares [3]. - Wanjie Technology received nine invention patent certificates from the National Intellectual Property Administration [3]. Weekly Insights - The report suggests focusing on key players in the domestic AI computing power sector, such as Cambrian and Haiguang Information in chip design, and SMIC in advanced wafer manufacturing [4]. - The report also identifies various AI application companies across different sectors, including Kingsoft Office, Hehe Information, and Keda Xunfei in office automation and education [4]. Recent Developments - The report outlines significant investments and acquisitions in the AI sector, including Amazon's potential additional investment in Anthropic and Google's acquisition of AI programming startup Windsurf's core talent and technology [16][17]. - The report notes that xAI, led by Elon Musk, is negotiating a new funding round that could value the company at up to $200 billion, reflecting the growing interest and investment in AI technologies [10][18]. AI Application Ecosystem - The report highlights the rapid growth of AI applications, with OpenAI and Anthropic achieving annual recurring revenues (ARR) of $10 billion and $3 billion, respectively [22]. - Domestic AI applications like deepseek and Doubao are showing significant commercial potential, with user engagement metrics comparable to leading international AI applications [22]. Global AI Company Rankings - The report provides a ranking of global AI companies based on their ARR, with OpenAI leading at $10 billion, followed by Anthropic at $3.008 billion [23].

Core Viewpoint - China's aggressive strategy in developing its domestic semiconductor industry has yielded significant successes, including advanced wafer fabs capable of producing 7nm logic chips and world-class 3D NAND and DRAM storage devices. However, the journey has not been smooth, with numerous failures due to investment missteps, technical flaws, and unsustainable business models [2][7]. Group 1: Current State of Semiconductor Industry - As of early 2024, China has 44 semiconductor production facilities, including 25 300mm fabs, 5 200mm fabs, 4 150mm fabs, and 7 idle fabs, referred to as "zombie fabs" [3]. - China is in the process of constructing 32 additional semiconductor manufacturing projects as part of the "Made in China 2025" initiative, which includes 24 300mm fabs and 9 200mm fabs [3]. Group 2: Notable Failures in Semiconductor Projects - Several high-profile wafer fab projects, with investments ranging from $50 billion to $100 billion, have failed in recent years. Examples include: - Dehai Semiconductor, which aimed to design analog and mixed-signal ICs with a $3 billion investment, went bankrupt and had its assets auctioned [5]. - Fujian Jin Hua Integrated Circuit (JHICC), which aimed to produce 60,000 wafers monthly, was blacklisted by the U.S. government and failed to develop DRAM technology [5]. - GlobalFoundries' Chengdu project, which planned to invest $10 billion, was abandoned due to financial difficulties [17]. - Wuhan Hongxin Semiconductor Manufacturing Co. (HSMC) faced severe funding shortages and was taken over by local government after failing to produce chips [10]. - QXIC, established after HSMC's issues, never progressed beyond the planning stage and was suspended by 2021 [14][15]. Group 3: Lessons from Failures - Many semiconductor projects in China failed due to a lack of technical expertise and overly ambitious goals. Startups attempted to produce advanced nodes like 14nm and 7nm without the necessary experience or equipment [6]. - The U.S. export restrictions since 2019 have hindered access to critical chip manufacturing equipment, stalling progress in advanced fabs [7]. - The experiences from these failures highlight the importance of sustained expertise, supply chain depth, and long-term planning in the semiconductor industry [25].

Group 1 - The net buying of Meituan reached HKD 715 million, while net selling of Xiaomi Group was HKD 738 million [1] - Southbound funds have continuously net bought SMIC for 16 days, totaling HKD 9.52904 billion [1] - The insurance sector, led by China Ping An, has seen a significant upward trend, with a maximum cumulative increase of 35% in H-shares since early April [5] Group 2 - Meituan has formed a strategic partnership with Sinopec Easy Joy to enhance instant retail services, aiming for a "30-minute delivery" model [5] - Guotai Junan International expects a net profit of HKD 515 million to HKD 595 million for the six months ending June 30, 2025, representing a growth of 161%-202% compared to the previous year [5] - NVIDIA plans to launch a new AI chip designed for the Chinese market, which may alleviate short-term computing power concerns but could also strengthen the logic of domestic substitution in the long term [6]