National Big Fund, major moves!

On January 2, 2026, information from the Hong Kong Stock Exchange showed that on December 29, 2025, SMIC agreed to issue 357 million shares to the National Integrated Circuit Industry Investment Fund Co., Ltd. (referred to as the "National Integrated Circuit Fund" or "National Big Fund"). The National Integrated Circuit Fund's shareholding in SMIC's H shares increased from 4.79% to 9.25%, nearly doubling its stake. As a result, the number of SMIC shares held by the National Integrated Circuit Fund increased to 740 million shares. Image source: Hong Kong Stock Exchange website According to Wind data, on January 2, SMIC's H shares surged by 5.11%, closing at HKD 75.1 per share, with a market capitalization of HKD 722.6 billion. Image source: Wind This time, SMIC exchanged company equity for the shares held by the National Integrated Circuit Fund in SMIC North. On December 29, 2025, SMIC announced that it planned to issue 547 million shares to the National Integrated Circuit Fund and four other shareholders of SMIC North to acquire 49% equity in SMIC North. After the transaction is completed, SMIC North will become a wholly-owned subsidiary of SMIC. Among them, the number of shares issued by SMIC to the National Integrated Circuit Fund is 357 million shares. After the transaction is completed, the National Integrated Circuit Fund and its concerted actor, XinXin Hong Kong, will become shareholders holding more than 5% of SMIC in total. SMIC South and SMIC North are both subsidiaries of SMIC. Recently, while acquiring SMIC North, SMIC also introduced new investors to SMIC South through a capital increase agreement. Among them, the National Integrated Circuit Fund Phase III became a new investor in SMIC South. On December 29, 2025, SMIC announced that the total cash contributions from all capital increase parties to SMIC South amounted to USD 7.778 billion, of which USD 3.5773 billion was included in the registered capital of SMIC South, and USD 4.2007 billion was included in the capital reserve of SMIC South. The National Integrated Circuit Fund Phase III contributed USD 1.832 billion. Other capital increase parties include SMIC Holdings, Shanghai Integrated Circuit Fund Phase II, Taixin Dingji, and Pioneer Integrated Circuit Fund. SMIC Holdings is a wholly-owned subsidiary of SMIC. The National Integrated Circuit Fund was established in September 2014 and primarily invests in the value chain of the integrated circuit industry through equity investments, focusing on integrated circuit chip production, chip design, packaging and testing, as well as equipment and materials. The National Integrated Circuit Fund Phase II and Phase III were established in October 2019 and May 2024, respectively Risk Warning and Disclaimer The market has risks, and investment should be cautious. This article does not constitute personal investment advice and does not take into account the specific investment goals, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are suitable for their specific circumstances. Investment based on this is at one's own risk