Jin Rong Jie·2025-12-24 02:34Core 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, driven by rising demand and price adjustments in the industry [1][3]. Group 1: Market Performance - On December 24, Hong Kong stocks in the semiconductor sector opened strongly, with SMIC and Shanghai Fudan rising by 5% and Hua Hong Semiconductor increasing by over 4% [1]. - The first Hong Kong ETF focused on the semiconductor industry, the Hong Kong Information Technology ETF (159131), saw a price increase of 1.9%, with real-time transaction volume exceeding 24 million yuan [1][2]. Group 2: Price Adjustments and Demand - SMIC has implemented price increases on some of its production capacities, with an approximate rise of 10%, which is expected to be executed soon [2][3]. - The increase in semiconductor product demand is attributed to the continuous growth in mobile applications and AI, leading to higher wafer demand [3]. - The capacity utilization rates for SMIC and Hua Hong are nearing or exceeding full capacity due to strong demand [3]. Group 3: ETF Composition and Strategy - The Hong Kong Information Technology ETF is structured with a composition of 70% hardware and 30% software, focusing on semiconductor, electronics, and computer software sectors, covering 42 Hong Kong tech companies [3]. - Key holdings in the ETF include SMIC with a weight of 20.48%, Xiaomi Group-W at 9.53%, and Hua Hong Semiconductor at 5.80%, excluding major internet companies like Alibaba and Tencent to enhance focus on AI and hard technology [3].