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Chinese markets showed a clear rotation into semiconductor and AI-related stocks on May 25, driven by heavy institutional buying and strong STAR Market performance. SMIC rallied over 16–18% across exchanges, Cambricon jumped more than 10%, and multiple chip and equipment names hit daily limits or record highs. Institutional flows favored electronics and chipmakers—Cambricon, Huatian and SMIC saw large net inflows—while capital was pulled from power equipment and materials. The moves reflect renewed investor enthusiasm for domestic chip manufacturing, AI accelerators and supply-chain investment, lifting tech valuations and signaling shifting sector leadership in China’s equity market.
The rotation into chips and AI stocks signals shifting sector leadership in China equities, affecting supply-chain orders, valuations, and capital allocation for tech firms. Tech professionals should monitor demand signals and policy or index changes that can drive funding and hiring in semiconductors and AI hardware.
Dossier last updated: 2026-05-29 10:44:28
Shanghai Stock Exchange and China Securities Index Co. will adjust multiple indices after market close on June 12, 2026; the STAR Market’s benchmark Sci-Tech Innovation 50 (科创50) will replace four constituents. New inclusions are Hua Hong Semiconductor (华虹公司), Yuanjie Technology (源杰科技), Moore Threads (摩尔线程), and Muxi Co. (沐曦股份). The change alters the composition of a key tech-focused index tracking leading Chinese science-and-technology companies, affecting passive funds, index-linked products and market visibility for the added firms. Index rebalancing can influence capital flows and valuations for semiconductor, AI chip and other high-tech firms that comprise the STAR Market benchmark.
A-shares closed higher across the board on May 25, with the Shanghai Composite up 0.96%, the Shenzhen Component up 1.66% and the ChiNext up 2.1%. Semiconductor, power and telecom-equipment sectors led gains: SMIC (中芯国际) surged more than 18%, Hua Hong Semiconductor hit its daily limit, Newisle (新易盛) rose over 8%, and Jin Kong Power climbed over 5%. Energy, gas and pharmaceuticals lagged, with Shouhua Gas down over 8%, Victory Shares down about 5%, and Hongyuan Pharma down over 4%. The move highlights renewed investor interest in chip and infrastructure-related stocks amid sector rotation and could signal demand for semiconductor manufacturing and equipment plays.
The STAR Market’s Sci-Tech Innovation 50 Index (科创50) surged over 5% on May 25, 2026, with multiple stocks hitting daily limits. Key gains included SMIC (中芯国际) rallying over 16% and Cambricon (寒武纪) rising more than 10%, while Huali Microelectronics (华虹), Huada Jiutian (华大九天), and SSMC Shanghai (盛美上海) reached limit-up trading and several stocks set all-time highs. The move underscores renewed investor enthusiasm for Chinese semiconductor, AI chip and advanced manufacturing names listed on the STAR Market, reflecting sector momentum and potential implications for capital flows, supply-chain investment, and chip-industry valuations.
Mainland Chinese market flows in the morning session saw institutional money rotating into electronics while selling power equipment. Key net inflows went to semiconductor and electronics names: Cambricon (寒武纪) (+¥2.25B), Huatian Technology (华天科技) (+¥2.03B), and SMIC (中芯国际) (+¥1.91B). Major net outflows hit power equipment and materials stocks, including Shenghong (盛宏股份) (−¥1.86B), Zhongtian Technology (中天科技) (−¥1.51B), and Do-Fluoride (多氟多) (−¥1.34B). The midday market tone was broadly positive with China’s benchmarks up and semiconductors among leaders, underscoring continued investor focus on chips and electronics amid profit-taking in heavy industry and materials. This matters for tech supply chains and sector rotation signals for investors and startups tied to semiconductors.