On May 28, the three major A-share indices opened slightly lower, while the hard technology sector in the Hong Kong stock market fluctuated and rose. Among them, the wafer foundry and silicon wafer sectors led the gains, benefiting from heavy asset attributes and domestic substitution logic. In terms of individual stocks, Hua Hong Semiconductor rose over 14%, hitting a new high during the session, SMIC increased by over 7%, and several stocks including Hong Teng Precision, Lenovo Holdings, and Lens Technology also followed suit. In the ETF sector, the China Merchants CSI HK Connect Information Technology Composite ETF (526050) fluctuated and rose, increasing by 1.45% as of the time of writing.
In terms of news, Changxin Technology's IPO on the Sci-Tech Innovation Board was approved by the listing committee yesterday. As the largest IPO in the A-share market since 2026, it plans to raise 29.5 billion yuan, with market expectations that its market value will reach between 2 trillion and 3 trillion yuan.
Market analysis suggests that the approval of Changxin Technology marks the official entry of the domestic storage chip leader into the capital market, which will significantly enhance the overall market capitalization weight and attention of the A-share semiconductor sector. As a rare domestic target, the valuation level after Changxin's listing will directly establish a new pricing anchor for the entire domestic storage industry chain.
Industry reports indicate that in the second quarter of 2026, the contract prices for DRAM and NAND Flash will continue to rise month-on-month, with enterprise-level SSD demand being the main driving force—global NAND Flash market size reached 42.815 billion USD in the first quarter of 2026, a staggering increase of 81.8% quarter-on-quarter, with the top five manufacturers accounting for over 87% of the total.
On the supply side, Yangtze Memory Technologies' Wuhan Phase III factory is expected to begin mass production in the second half of 2026, with total monthly capacity increasing to 300,000 12-inch wafers after reaching full capacity; Changxin Storage's existing capacity is expected to reach full production by 2026. However, the market generally expects the shortage situation to last at least until 2027, reflecting that even if domestic leading manufacturers fully expand production, they still cannot meet the explosive demand brought by AI, resulting in a &#34;hard gap&#34; in supply and demand.
At the same time, the price increase effect is spreading from advanced processes to mature processes: TSMC plans to raise the price of its 3nm process by up to 15% in the second half of 2026, with a potential further increase of 5%-10% in 2027, while UMC and SMIC have already started raising prices. This widespread price increase situation reflects extremely strong downstream demand.
In the core HBM sector, the supply-demand contradiction is even more pronounced. SK Hynix, Micron, and Samsung's HBM capacity for the entire year of 2026 has been completely sold out, with the unit price of HBM4 increasing by about 50% compared to HBM3E, and price increases are expected to continue until 2027. Prices for upstream categories such as high-frequency copper-clad laminates, high-purity targets, and ABF substrates have also risen accordingly.
This phenomenon further confirms the fundamental shift in the current semiconductor industry: in the past, the market was concerned about &#34;overproduction leading to surplus,&#34; but now, under the sustained high demand for AI computing power, the industry is showing a pattern of &#34;full production still unable to meet demand.&#34; Changxin Technology's IPO is not only a short-term event-driven occurrence but is also expected to drive the reconstruction of the valuation system for storage chips and even the entire semiconductor industry
Guojin Securities pointed out that the current AI market is in a stage of &#34;rational frenzy.&#34; The rational aspect lies in the fact that the AI business closed loop has been validated, with leading companies experiencing rapid revenue growth, supporting a continuous strengthening of the hardware chain; the frenzy aspect is that valuations have already priced in growth expectations for 2027-2028, implying that the speed of AI penetration needs to be 5-8 times faster than previous general technologies. Whether this assumption can be realized is a key variable in the medium term. Overall, the long-term prospects for the AI industry are positive, but the market needs to balance industry trends with real constraints, maintaining cautious verification alongside bold assumptions.
Data shows that the China Merchants CSI HK Connect Information Technology Composite ETF (526050) is a rare representative of &#34;pure hard technology&#34; in the Hong Kong stock market. The ETF tracks the CSI HK Connect Information Technology Composite Index, which has a higher concentration in the AI industry chain than the Hang Seng Technology Index, focusing on three major areas: &#34;semiconductors + electronics + computer software,&#34; with the storage concept accounting for 26%, and excluding internet companies, making its hard technology attributes more pure.
Specifically, over 90% of the ETF's positions are focused on the AI hardware industry chain: in chip manufacturing, SMIC and HUA HONG SEMI together account for about 24%; in AI servers and terminals, Lenovo Group and Xiaomi Group together account for about 21%; in robotics, UBTECH accounts for about 4%. In addition, the index also covers segments such as PCB, copper-clad laminates, and optical acoustic components, forming a complete AI hardware chain from upstream materials, midstream chips to downstream terminals.
From a historical performance perspective, according to Wind data, as of April 30, 2026, the CSI HK Connect Information Technology Composite Index has achieved a cumulative increase of 74.58% over the past three years, outperforming the same period's Guozheng HK Connect Technology Index, Hang Seng Technology Index, and HK Connect Internet Index, demonstrating higher elasticity. Under the resonance of multiple medium to long-term logics, including the continuous promotion of domestic substitution, accelerated implementation of terminal intelligence, and sustained tight supply and demand for AI hardware, investors may consider using the China Merchants CSI HK Connect Information Technology Composite ETF (526050) to easily allocate to Hong Kong's AI hard technology

01347

688347

526050

Changxin Technology's IPO of 29.5 billion has been approved, becoming the largest IPO in A-shares, with an expected market value reaching 2 trillion to 3 trillion, driving an overall increase in the market value of the semiconductor sector. HUA HONG SEMI's stock price has reached a historical high, and the Hong Kong Stock Connect Information Technology ETF has risen over 1%. Market analysis suggests that Changxin's listing will establish a new pricing anchor for the domestic memory industry chain, with the supply-demand gap expected to continue until 2027, and the price increase effect spreading to mature processes

同壁财经

HUA HONG SEMI

Hua Hong

China Merchants CSI HK Connect Information Technology Composite ETF

SMIC

FIT HON TENG

LEGENDHOLDING

Lens

Taiwan Semiconductor

United Microelectronics

Micron Tech

Samsung Electronics 

SINOLINK SECURITIES

LENOVO GROUP

Lenovo Group

XIAOMI-W

UBTECH ROBOTICS

SMIC HK SDR 5to1

Samsung Electronics Co., Ltd. Sponsored GDR

LENOVO GROUP-R

Xiaomi Corporation

XIAOMI-WR

Xiaomi HK SDR 2to1

Changxin's 29.5 billion IPO approval ignites the sector, HUA HONG SEMI hits a historic high, and the Hong Kong Stock Connect Information Technology ETF (526050) rises over 1% against the trend