SMIC(SH:688981) Xin Lang Cai Jing·2025-07-07 09:07Core Viewpoint - The A-share market shows a mixed trend with the Sci-Tech Innovation Board experiencing a pullback, while the Sci-Tech Chip 50 ETF (588750) continues to attract significant capital inflow, totaling over 88 million yuan in the past four days [1][7]. Group 1: Market Performance - The Sci-Tech Chip 50 ETF (588750) fell by 0.5%, marking two consecutive days of closing with a doji candlestick pattern [1]. - The majority of the index component stocks for the Sci-Tech Chip 50 ETF showed mixed performance, with notable declines in stocks like Huazhong Microelectronics (down over 3%) and SiTime (down over 2%) [3][4]. Group 2: Capital Inflows - Southbound funds have shown strong interest, with a net purchase of 5.229 billion HKD in SMIC, leading the net buying rankings [5][6]. - Over the past year, southbound funds have cumulatively bought SMIC shares worth 29.822 billion HKD, indicating sustained interest [5]. Group 3: Industry Trends - The ongoing investment in the Sci-Tech Chip sector is driven by three main factors: the semiconductor cycle upturn, AI-driven demand, and accelerated domestic substitution [7]. - The semiconductor equipment market in mainland China saw a decline in Q1 2025, but domestic equipment manufacturers reported significant growth, with a revenue increase of 39% year-on-year to 18.9 billion yuan [8][9]. Group 4: Future Outlook - The domestic wafer foundry industry is expected to maintain its capacity expansion trend, with capital expenditure needs anticipated to remain strong [10]. - The valuation of the technology sector, particularly in semiconductors, is expected to be restructured due to geopolitical factors, with a focus on domestic production capabilities [11].