Semiconductor stocks are benefiting from a wave of price increases across the industry chain. SEMI (International Semiconductor Equipment and Materials Association) forecasts that the global semiconductor manufacturing equipment market will reach a new high in 2025, growing 13.7% year-on-year to $133 billion. Driven by AI and HBM demand, the market is expected to expand further to $145 billion by 2026. Mainland memory manufacturers are accelerating capacity expansion, creating opportunities for domestic equipment suppliers in core process segments, with expectations for increased market share strengthening. China Galaxy Securities released a semiconductor industry research report stating that the mainland analog chip design sector is gradually emerging from a period of stagnation, with several overseas leaders signaling price hikes. Concurrently, explosive demand for AI server power chips and advanced autonomous driving chips suggests the industry may be approaching a cyclical turnaround. China Galaxy Securities indicated that in December 2025, the semiconductor sector experienced a structural rally driven by the combined forces of supply chain price increases, sustained AI demand, and a reinforced logic for domestic substitution. Against the backdrop of the external environment, supply chain security and self-sufficiency are long-term trends. Equipment and materials represent the most robust investment thesis under the top-level design of domestic substitution, digital chips are the core载体 of computing power autonomy, and advanced packaging and testing benefits from technological upgrades. The semiconductor sector involves Hong Kong stocks such as SMIC (00981), Hua Hong Semiconductor (01347), Baidu Group-SW Kunlun Chip (09888), Shanghai Fudan (01385), Biren Technology (06082), and Innoscience (02577).
The Hang Seng Index ADR rose 0.41%. Overnight, the Dow Jones Industrial Average increased by 319.1 points to close at 48,382.39, a gain of 0.66%. The S&P 500 index rose by 12.97 points to 6,858.47, up 0.19%. The Nasdaq Composite Index fell slightly by 6.36 points to 23,235.63, a decline of 0.03%. For the week, the Dow fell 0.67%, the Nasdaq fell 1.52%, and the S&P 500 fell 1.03%. Chip stocks generally advanced, with SanDisk up nearly 16%, Micron Technology surging over 10% (hitting a new high), Western Digital up nearly 9%, ASML rising over 8% (also a new high), and Intel gaining over 6%. Stocks in rare earths, drones, nuclear power, and quantum computing also saw broad gains: USA Rare Earth jumped nearly 19%, Critical Metals rose 17%, and Energy Fuels climbed over 14%. Red Cat Holdings increased over 15%. Popular Chinese concept stocks generally rose, with Baidu soaring over 15%, Bilibili and NetEase up over 7%, Alibaba gaining over 6%, and JD.com rising nearly 3%. The Hang Seng Index ADR, calculated proportionally, closed at 26,445.95 points, up 107.48 points or 0.41% from the Hong Kong close.
Jensen Huang is scheduled to deliver a keynote speech in the early hours of January 6, Beijing Time. Wedbush Securities' Dan Ives expects Huang's presentation to heavily focus on data centers, Physical AI, and robotics technology. When looking ahead to 2026, Huang is also anticipated to discuss the latest advancements in the Cosmos foundational model platform for accelerating AI system development, using this as a segue into elaborating on autonomous technologies like self-driving. The tech media outlet Wccftech predicts that due to memory price increases, the RTX 50 Super series might see a delayed release, and NVIDIA may downplay consumer-grade graphics cards. Jensen Huang is likely to emphasize the Physical AI strategy, promoting the extension of AI computing power into robotics and industrial scenarios. Lopal Tech (02465) plans to invest in building a production base with an annual capacity of 240,000 tons of lithium iron phosphate, with a total investment not exceeding 2 billion yuan. According to a Zhitong Caijing APP report, Lopal Tech (02465) announced that, based on market demand and the company's actual situation, it will further expand its high-performance lithium iron phosphate production capacity. The project is proposed to be constructed by Liyuan (Jiangsu) Technology Co., Ltd., a wholly-owned subsidiary of Changzhou Liyuan, within the Jiangsu Jintan Hua Luogeng High-tech Industrial Development Zone. It will involve building an R&D center and a production base for 240,000 tons per year of high-density lithium iron phosphate, with a planned total investment not exceeding 2 billion yuan. The specific investment amount will be based on actual inputs, funded by the company's own capital or raised funds. The production base will be implemented in two phases, with the first phase planning 120,000 tons. Changzhou Liyuan will initiate the second phase based on market conditions. BrainAurora-B (06681) subsidiary formally signed a "Cognitive Digital Therapy Project Cooperation Agreement" with Beijing Jianguo Medical Technology. According to a Zhitong Caijing APP report, BrainAurora-B (06681) announced that its indirect wholly-owned subsidiary, Zhejiang BrainAurora Medical Technology Co., Ltd., has formally signed the agreement with Beijing Jianguo Medical Technology Co., Ltd. The two parties will engage in deep cooperation from January 1, 2026, to December 30, 2026, focusing on the project "Construction and Promotion of Application Scenarios for Cognitive Function Assessment and Training in Mental Health," jointly promoting the standardization, scaling, and accessibility of cognitive impairment digital therapies. Dongfang Electric Corporation (01072) received a share increase of 4.3704 million A-shares from its controlling shareholder, Dongfang Electric Group, completing the share purchase plan. According to a Zhitong Caijing APP report, Dongfang Electric Corporation (01072) announced that its controlling shareholder, Dongfang Electric Group, increased its holding of 4.3704 million A-shares of the company through the Shanghai Stock Exchange trading system via集中竞价交易 between April 11, 2025, and December 31, 2025. This represents approximately 0.13% of the company's total share capital, with a total investment of RMB 100 million. This share increase plan has been fully implemented. Goldstream Inv (01328): Holds 1,092.3 Ether. According to a Zhitong Caijing APP report, Goldstream Inv (01328) announced that as of the date of this announcement, the group holds 1,092.3 Ether, with a total cost of approximately $3.962 million and an average cost per Ether of about $3,627.2. Guofuhee (02582) has completed delivery of a total of 424 sets of vehicle-mounted high-pressure hydrogen supply systems to its customers. According to a Zhitong Caijing APP report, Guofuhee (02582) announced that the group has completed the delivery of a total of 424 sets of vehicle-mounted high-pressure hydrogen supply systems to its customers. These systems will be used in fuel cell buses in Guangzhou, Guangdong Province, China, as part of a green, low-carbon public transportation demonstration project promoted by the city as a member of the national hydrogen energy demonstration city cluster. This delivery by the group provides efficient hydrogen energy supply for Guangzhou's large-scale commercial operation of hydrogen fuel cell buses, which is one of China's largest hydrogen bus projects. China Ping An Insurance (Group) Co., Ltd. increased its holding in Agricultural Bank of China (01288) by approximately 125 million shares at an average price of about HK$5.68 per share. On December 29, 2025, China Ping An Insurance (Group) Co., Ltd. increased its holding in Agricultural Bank of China (01288) by 124.569 million shares, at a price of HK$5.6792 per share, with a total amount of approximately HK$707 million. OSL GROUP (00863) completed the acquisition of Banxa. According to a Zhitong Caijing APP report, OSL GROUP (00863) announced matters related to the proposed acquisition of Banxa. The board宣布 that all conditions under the arrangement agreement have been fulfilled or waived (as applicable), and the proposed acquisition was completed on January 2, 2026. Following the completion of the proposed acquisition, Banxa has become an indirect wholly-owned subsidiary of the company. CICC International (00943) intends to acquire a beauty industry digital solutions company for HK$62.5 million; trading resumes on January 5. According to a Zhitong Caijing APP report, CICC International (00943.) announced that on December 31, 2025 (after trading hours on the Stock Exchange), the company and the seller, Elly Beauty Group Limited, entered into an acquisition agreement. Accordingly, the company conditionally agreed to acquire, and the seller conditionally agreed to sell (i) the sale shares, representing the entire equity interest in the target company, Elise Beauty Group Limited, at completion; and (ii) the sale loan, representing the outstanding shareholder loan owed by the target company to the seller at completion, for a total consideration of HK$62.5 million. The consideration will be satisfied by the allotment and issue of 342 million consideration shares to the seller at an issue price of HK$0.1828 per share.
Goldwind (02208): Landspace's STAR Market IPO application accepted. On December 31, information on the Shanghai Stock Exchange website showed that Landspace Space Technology Co., Ltd.'s IPO application for the STAR Market has been accepted, officially making a bid to become the "first commercial rocket stock" on the STAR Market. According to the draft prospectus, Landspace is still in a loss-making state and plans to list using the STAR Market's fifth set of listing standards. This signifies the formal expansion of the fifth set of listing standards to the commercial aerospace field. According to Goldwind's 2023 annual report, the company holds an 8.3% equity stake in Landspace Space Technology Co., Ltd. Public information indicates that Landspace was founded in 2015 and is one of China's first private commercial rocket enterprises. In 2023, its ZQ-2 Yao-2 rocket successfully achieved orbit, becoming the world's first liquid methane rocket to do so. From October 18 to 20, 2025, the ZQ-3 Yao-1 rocket completed the first stage of its maiden flight mission, including fueling integration rehearsals and a static fire test, at the Dongfeng Commercial Aerospace Innovation Test Zone.
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