SMIC Sees Strong Surge Amid Broader Asian Tech Rally
On Friday, October 24, 2025, the Hong Kong-listed semiconductor foundry SMIC (00981.HK) rallied more than 8 % at the close of trading, joining a wave of gains that lifted the Hang Seng Index (HSI) to 26,160, a 0.7 % rise. The jump in SMIC’s share price coincided with a broader uptick in Asian equities, as noted by multiple market‑watching outlets.
Market Context
- HSI and HSTI Movements: The HSI rose 192 points (0.7 %) to 26,160, while the Hang Seng Tech Index (HSTI) gained 108 points (1.8 %) to 6,059. The Hang Seng China Enterprises Index (HSCEI) also advanced 63 points (0.7 %) to 9,363, indicating a broad-based lift across sectors.
- Turnover and Investor Appetite: Market turnover reached HKD 226.61 billion, reflecting heightened liquidity. Heavyweights such as Alibaba (09988.HK) and Xiaomi (01810.HK) posted gains, though Xiaomi slipped slightly, underscoring selective strength in the tech space.
- Southbound Activity: In the Shenzhen‑to‑Hong Kong corridor, Southbound net inflows of HKD 654.8 million were recorded for Meituan‑W (03690.HK). SMIC itself attracted a net inflow of HKD 570.7 million, illustrating continued investor interest in semiconductor exposure.
SMIC’s Performance
SMIC’s share price closed at 80 HKD, up more than 8 % from the previous session’s close. The move pushed the stock toward the upper range of its 52‑week high of 93.5 HKD, reached earlier in October. The company’s valuation metrics remain high, with a price‑to‑earnings ratio of 144.22, reflecting the premium investors are willing to pay for a leading foundry in China’s rapidly expanding chip ecosystem.
Drivers Behind the Rally
Sector‑Wide Optimism
Asian technology stocks benefited from optimism about the upcoming meeting between U.S. President Donald Trump and Chinese President Xi Jinping. The White House’s confirmation of the meeting has sparked speculation that trade tensions could ease, a prospect that has buoyed investor sentiment across the region.Policy Support for Self‑Reliance
Beijing’s latest policy brief reiterated its commitment to building a robust industrial base in artificial intelligence, semiconductors, aerospace, and clean energy. This “tech self‑reliance” narrative has been priced into the market, reinforcing confidence in companies like SMIC that play a critical role in China’s chip supply chain.Demand Resurgence
The broader Asian tech rally, driven by chip demand and AI hype, has lifted names such as Renesas and SMIC. While the article does not detail specific earnings or guidance, the sector’s momentum suggests that demand for integrated circuits is rebounding, supporting the foundry’s business prospects.
Risks and Considerations
Despite the rally, SMIC’s valuation remains steep, and the company’s earnings trajectory is not highlighted in the available reports. Investors should remain cautious about potential headwinds such as geopolitical tensions, regulatory changes, or shifts in global supply‑chain dynamics that could impact the semiconductor industry’s growth trajectory.
Conclusion
SMIC’s sharp gain on October 24 reflects a confluence of regional market strength, supportive policy signals, and renewed optimism about U.S.–China relations. While the company’s stock is still trading near its recent highs, the broader backdrop of a tech‑led rally in Asia and policy endorsement of semiconductor development suggests continued investor interest in SMIC’s role within China’s critical infrastructure.
