[Zhenzhuo Hong Kong Stock Experts] U.S. stocks rose sharply on Tuesday, and Huahong Semiconductor (01347.HK) will acquire 97.5% of the equity of Huahong Microelectronics.

Hong Kong Stock Market Trends and Analysis

U.S. stocks rose sharply on Tuesday, with the market sentiment remaining positive. The Dow Jones and S&P 500 indices hit new all-time highs, and all three major indices closed higher. The U.S. dollar strengthened, and the 10-year Treasury yield rebounded to 4.17%. Gold prices continued to rise, while oil prices declined. Hong Kong-listed depositary receipts generally rose, and the market is expected to open higher in early trading. Mainland stocks rose yesterday, with the Shanghai Composite Index opening higher and closing up 1.5%. Trading volume in Shanghai and Shenzhen further increased. Hong Kong stocks remained strong, with the index opening higher and stabilizing at the 26,700-point level at the close. Overall trading remained active. Blue-chip stocks generally rose, with tech and resource stocks leading the gains. The index is expected to challenge resistance at 27,000 points, with support near 26,000 points.

Industry News

$HUA HONG SEMI(01347.HK) will acquire a 97.5% stake in HLMC (Huahong Grace Semiconductor Manufacturing Corporation) through a share issuance, with the transaction amounting to RMB 8.268 billion. This marks clear progress in Hua Hong's integration of its semiconductor business, aiming to resolve industry competition and enrich its process platform. Currently, Hua Hong Semiconductor and HLMC have complementary production technologies, with both capable of manufacturing at 65/55nm and 40nm foundry processes. As the operator of the mainland's first automated 12-inch foundry production line, HLMC has demonstrated a strong profit model, reflecting stable growth momentum. Additionally, the acquisition will significantly enhance Hua Hong's production capacity and market competitiveness. Hua Hong's operating income and net profit have shown significant growth in recent years, indicating strong business development and technological capabilities. Overall, Hua Hong Semiconductor's strategic planning in this merger will support its continued development and consolidation of its leading position in the semiconductor industry, with a positive market response expected.

Harbour Family Office Business Development Director, Guo Jiayao CFA
Date: Wednesday, January 7, 2026
(The author is a licensed person of the SFC, and the author and related parties do not hold the above-mentioned shares.)