This morning, the A-share market saw volatility and adjustments, with major indices showing mixed performance. The STAR Market 50 and the Beijing Stock Exchange 50 indices posted slight gains, reflecting some positive sentiment in the market. On the other hand, the Shanghai Composite, Shenzhen Component Index, and ChiNext Index experienced slight pullbacks. On the trading floor, sectors like chips, coal, pre-prepared dishes, and reducers led in gains, while short video gaming, Sora concept, BC batteries, and warehousing logistics saw declines.
Chip Sector Shows Strong Performance Across the Board
The chip sector emerged as the market's biggest highlight today, especially the automotive chip segment leading the gains. The overall performance of the chip sector was robust, with the sector index opening higher on increased volume, rising by over 4% at one point during the day, and trading volume nearing that of the entire previous day. Several chip stocks saw significant gains, with Huapei Power and Dawei Co., Ltd. hitting the limit-up upon opening, and Dongfang New Energy and Kangda Technology quickly followed suit with positive performances. Additionally, sub-sectors like MCU chips, memory chips, semiconductors, and advanced packaging all showed strength, with stocks like Shanzi High-tech, Broadcom Integration, Huanteng International, and Nantong Jinggong hitting the limit-up.
Hong Kong Chip Concept Stocks Also Perform Well
In the Hong Kong stock market, chip concept stocks also saw a strong rebound, with the Hang Seng Software and Semiconductor Index climbing by more than 2% at one point during the day. Leading gainers included Cultuve, BrainholeTech, Macroview Semiconductor, and Famous Technology, reflecting generally optimistic market sentiment.
Policy Support and Surging Demand Fuel Industry Growth
On the news front, major industry associations including the China Internet Association, China Semiconductor Industry Association, and China Association of Automobile Manufacturers jointly released a statement emphasizing that American chip products are no longer safe or reliable. They urged domestic companies to be cautious when purchasing American chips and to actively expand cooperation with chip companies from other countries and regions, promoting the application of domestically produced and foreign-invested chips in China. Moreover, the rise of new energy vehicles and artificial intelligence is providing a significant boost to chip demand. According to data from the China Association of Automobile Manufacturers, the number of automotive chips required by electric vehicles will be nearly three times that of traditional fuel vehicles, and demand for chips in smart vehicles is expected to further increase.
Future Market Outlook
As the domestic semiconductor industry continues to develop, the localization process is expected to accelerate, offering breakthrough opportunities for relevant companies in sectors with low localization. Particularly, as domestic products gradually come to fruition, the manufacturing sector is likely to be buoyed by the demand for localized production. CITIC Securities believes that the joint appeal of the four major industry associations serves as a weather vane, anticipating that other industries may follow suit, and that the overall domestic localization process for the semiconductor industry will further accelerate.
Additionally, according to VMR data, GPU chips are a cornerstone in the AI field, with the global GPU market projected to reach $477.37 billion by 2030, boasting a compound annual growth rate of 34.4%. China's GPU market is expected to grow to $34.557 billion by 2027, with a compound annual growth rate of 32.8%. This further underscores the potential and future growth prospects of the chip industry.
In summary, with policy support and increasing industry demand, the domestic chip industry is entering a golden period of accelerated development, presenting a vast market outlook.
