Major ETFs tracking the technology-focused STAR 50 index are showing collective strength. At the time of writing, the China Southern STAR 50 ETF (03109) is up 3.8% to HK$21.28, the PP STAR 50 ETF (03151) has gained 3.75% to HK$15.48, and the Bosera STAR 50 ETF (02832) has risen 3.26% to HK$15.82.
Catalysts for the Move
The rally is supported by market reports indicating that global memory chip leaders Samsung Electronics and SK Hynix are planning to launch new semiconductor production projects with a total scale of approximately 800 trillion Korean won. Each company is set to construct two new dedicated chip fabrication plants, significantly expanding the global capacity layout for high-end semiconductors.
Analyst Perspectives
Guosen Securities notes that over 70% of the new capacity from the three major overseas memory manufacturers is being allocated towards High Bandwidth Memory (HBM) and DDR5 server memory. This strategic shift, which involves actively scaling back older production lines for DDR4 and 2D NAND, provides direct and compelling evidence of the strong, long-term certainty of demand growth in the memory sector driven by artificial intelligence.
In a separate research report, China International Capital Corporation (CICC) observed that the recent AI-themed market rally is showing signs of broadening. The focus is shifting towards a potential re-rating of upstream "pick-and-shovel" segments within the supply chain. Since the beginning of the year, the A-share market has continued to exhibit pronounced structural trends, with tech and growth-oriented indices like the ChiNext and the STAR 50 significantly outperforming, posting gains of 30.9% and 51.2% respectively, with the AI industrial chain serving as the core theme.
CICC suggests that against the backdrop of a continuously strengthening AI industry trend, the current market phase is more likely to manifest as a broadening of investment styles within the sector rather than a systemic shift away from it. Specific upstream segments of the AI supply chain are identified as key areas of focus at this stage.
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