Xin Lang Cai Jing·2025-12-30 13:07Core Viewpoint - The Hong Kong stock market, particularly the semiconductor chip industry, is experiencing a strong rebound, with the Hong Kong Stock Connect Information C Index rising over 2%, significantly outperforming other technology indices [1][10]. Group 1: Market Performance - The Hong Kong Stock Connect Information C Index has a year-to-date increase of over 39% [1][10]. - The Hong Kong Stock Connect Information Technology ETF (159131) recorded a single-day trading volume of 77.27 million yuan, recovering both the 5-day and 20-day moving averages [2][11]. Group 2: Key Stocks and Movements - Notable stock performances include InnoCare Pharma rising over 15%, Midea Group increasing over 11%, and UBTECH Robotics gaining over 8% [5][15]. - Semiconductor companies like SMIC and iFlytek also saw increases of over 4% [5][15]. Group 3: Industry Developments - SMIC plans to acquire a 49% stake in SMIC North, which will become a wholly-owned subsidiary, and will receive a cash injection of $7.778 billion for SMIC South [3][12]. - This capital operation is expected to create opportunities for domestic chips, particularly in semiconductor equipment and AI infrastructure [3][12]. Group 4: Market Outlook - The semiconductor market in China is projected to reach $176.9 billion in 2024, with a year-on-year growth of 15.9%, and is expected to reach $206.7 billion by 2025 [4][13]. - The domestic semiconductor industry is making progress from downstream manufacturing to upstream core equipment, materials, and software, driven by national policies and international dynamics [4][13]. Group 5: Valuation Insights - The Hong Kong Information Technology ETF (159131) has a current P/E ratio of 33.25, which is significantly lower than the ChiNext Index at 41.04 and the Nasdaq 100 at 36.23, indicating a favorable investment valuation [6][16]. - The ETF focuses on a composition of 70% hardware and 30% software, covering 42 hard tech companies, with significant weights in SMIC (15.19%) and Xiaomi (14.21%) [8][18].