SMIC falls 5% in HK as global chip rout hits sentiment

Semiconductor Manufacturing International (981.HK) fell 5% in Hong Kong trading to HK$71.95, tracking a global chip-sector selloff. Turnover reached approximately HK$3.42 billion.

The Philadelphia Semiconductor Index dropped nearly 5% overnight, while South Korea's KOSPI slid over 5%, with Samsung and SK Hynix losing more than 6%. Hong Kong-listed chipmakers opened sharply lower across the board. Rising U.S. long-term Treasury yields — near two-decade highs — and escalating U.S.-Iran tensions pushed oil prices higher, stoking inflation concerns and dampening risk appetite.

SMIC's fundamentals remain solid. Second-quarter revenue reached $3.01 billion, up 36.1% year on year, while net profit surged 261.7% to $479 million. Capacity utilization climbed to 93.7%. Management guided third-quarter revenue growth of 2%–4% sequentially with gross margin of 26%–28%, both above consensus. Goldman Sachs, Citigroup and CMB International have raised price targets while maintaining buy ratings. Southbound funds were net buyers for six consecutive sessions, accumulating nearly HK$4.93 billion. Today's decline likely reflects short-term profit-taking pressure across the global chip sector rather than company-specific deterioration.