Semiconductor Manufacturing International Corporation (SMIC), China's largest chip manufacturer, saw its stock price surge by 5.09% in the pre-market trading session. This significant uptick comes as part of a broader rally in Hong Kong tech stocks, following news of easing trade tensions between the U.S. and its trade partners.
The positive movement for SMIC aligns with the overall upward trend in the Hong Kong market. The Hang Seng Tech Index jumped 4%, while the broader Hang Seng Index rose 2.7%. This surge was triggered by U.S. President Trump's announcement of a 90-day pause on the so-called reciprocal tariffs that were set to affect dozens of trade partners. However, it's worth noting that duties on China were raised to 125%, adding an element of complexity to the trade situation.
While SMIC was not specifically mentioned in the market reports, its strong performance is likely tied to the overall positive sentiment in the tech sector. As a key player in China's semiconductor industry, SMIC stands to benefit from any easing of trade tensions, which could potentially alleviate some of the pressures faced by Chinese tech companies. Investors appear to be reacting positively to these developments, driving up the stock prices of various tech firms listed in Hong Kong.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.