Semiconductor Manufacturing International Corporation (SMIC) shares surged 9.04% intraday on Wednesday, significantly outperforming the broader market. The rally in the Hong Kong-listed chipmaker came after the city's budget announcement, which included a major push for artificial intelligence (AI) development and support for the tech sector.
Hong Kong's Financial Secretary Paul Chan outlined plans to establish an AI research and development institute with a HK$1 billion investment. Additionally, the budget aims to expedite listings for tech companies through a dedicated "technology enterprises channel" on the stock exchange.
As a leading semiconductor foundry catering to China's burgeoning AI and tech industries, SMIC stands to benefit from Hong Kong's increased focus on these sectors. The company's shares jumped alongside other prominent tech names like Alibaba and Meituan, reflecting investor optimism about the potential growth opportunities.
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