SMIC, Hua Hong fall in Hong Kong after rally; Goldman ups target prices

Hua Hong Grace Semiconductor

08/10/2024 04:52

** Shares of Semiconductor Manufacturing International Corp
(SMIC)  0981.HK  fall 20.3%, as investors lock in gains after
stock soared 57% in past two trading sessions on hopes of more
government stimulus
    ** Hong Kong shares of Hua Hong Semiconductor  1347.HK  drop
22.9% after stock jumped 50.7% in last two trading days
    ** Goldman Sachs raises TP for SMIC to HK$25.7 from HK$22.4,
and Hua Hong to HK$31.3 from HK$27.3, saying it is positive on
China foundries' long-term opportunities on increasing localized
demand
    ** CMB International (CMBI) maintains "outperform" rating on
China semiconductors sector, saying most stocks are still
trading at discounts to historical highs 
    ** "For semiconductor sector, we are optimistic that
HK-listed companies will have upside opportunities, driven by
improvements of the market sentiment and funds inflows," CMBI
wrote, adding SMIC, Hua Hong, ZTE may be favored by funds
considering their larger market capitalizations 
    ** ZTE  0763.HK  falls 21.6% after stock surged 30.9% in
last two sessions
    ** However, China shares of ZTE  000063.SZ  jump 9.7% after
market reopened after long holiday, Hua Hong  688347.SS  up 20%
    ** China's chipmaking index  .STARCHIP  jumps 19.4% while
Hong Kong's Hang Seng Tech Index  .HSTECH  falls 7.5% 

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))