Xin Lang Cai Jing·2025-12-24 02:00Core Viewpoint - The Hong Kong stock market is experiencing a strong surge in the semiconductor sector, with notable increases in stock prices for companies like SMIC and Hua Hong Semiconductor, alongside the launch of the first ETF focused on the Hong Kong semiconductor industry [1][7]. Group 1: Market Performance - On December 24, the Hong Kong stock market saw significant gains in semiconductor stocks, with SMIC and Shanghai Fudan rising by 5% and Hua Hong Semiconductor increasing by over 4% [1][7]. - The first ETF focusing on the Hong Kong semiconductor industry (159131) recorded a price increase of 1.9%, with a real-time transaction volume exceeding 24 million CNY [1][7]. Group 2: Price Increases and Demand - SMIC has implemented price increases on some of its production capacities, with an approximate rise of 10% expected to be executed soon [8][9]. - The demand for semiconductor products is driven by the continuous growth in mobile applications and AI, leading to increased wafer demand [9]. - The capacity utilization rates for SMIC and Hua Hong are nearing or exceeding full capacity due to strong demand [9]. Group 3: ETF Composition and Strategy - The ETF's index is composed of 70% hardware and 30% software, heavily investing in Hong Kong's semiconductor, electronics, and computer software sectors, covering 42 hard-tech companies [9]. - SMIC holds a weight of 20.48% in the ETF, while Xiaomi Group-W and Hua Hong Semiconductor have weights of 9.53% and 5.80%, respectively [9].