<div id="readability-page-1"><div>SMIC (00981.HK) +2.500 (+2.962%) Short selling $3.53B; Ratio 10.839% opened 1.9% higher this morning (27th), hitting an intraday peak of HKD89.45. It is now trading at HKD87.3, up 3.44%, with turnover of 104 million shares, involving HKD9.052 billion. Meanwhile, HUA HONG SEMI (01347.HK) +9.500 (+6.611%) Short selling $2.34B; Ratio 20.167% opened 4.31% higher this morning, reaching a high of HKD156.6. It is now trading at HKD153.8, up 7.03%, with turnover of 28.2532 million shares, involving HKD4.3 billion.CLSA published a research report noting that Huawei has proposed a new semiconductor development principle known as &#34;Tao's Law.&#34; Unlike Moore's Law, which relies on geometric transistor scaling, &#34;Tao's Law&#34; focuses on shortening the time constant (i.e., signal propagation delay) to enhance transistor density and system performance.According to the report, Huawei has already applied &#34;Tao's Law&#34; to smartphones and AI computing, having designed and mass-produced 381 chips over the past six years. The next-generation Kirin chip, expected to be launched in autumn 2026, will adopt Logic Folding technology to achieve performance improvements. Huawei forecasts that by 2031, chips based on &#34;Tao's Law&#34; will reach transistor density equivalent to the 1.4-nanometer process node.CLSA believes that &#34;Tao's Law&#34; provides a new pathway to enhance chip performance and may accelerate the development of China's semiconductor industry. Potential beneficiaries among Hong Kong-listed stocks include SMIC, HUA HONG SEMI, CHANG ELEC TECH (600584.SH) +2.680 (+3.039%) , NAURA (002371.SZ) -3.480 (-0.519%) and AMEC (688012.SH) +5.810 (+1.253%) . (ad/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-05-26 16:25.) (A Shares quote is delayed for at least 15 mins.)</div></div>

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SMIC and HUA HONG SEMI saw stock increases of 3% and 7%, respectively, following CLSA's report on Huawei's new semiconductor principle, 'Tao's Law.' This principle aims to enhance chip performance by improving transistor density. CLSA identifies SMIC and HUA HONG SEMI as potential beneficiaries of this development, which could accelerate China's semiconductor industry growth.

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SMIC HK SDR 5to1

SMIC  and HUA HONG SEMI Gain 3% and 7%; CLSA Says Potential Beneficiaries of Huawei's "Tao's Law"