Chinese semiconductor stocks advanced on Monday after Beijing launched investigations into U.S. trade policies, signaling potential support for domestic chipmakers. The probes, announced late last week, focus on whether Washington has discriminated against Chinese firms in its semiconductor trade policies and on alleged dumping of imports such as analog chips used in automobiles, Wi-Fi routers, and hearing aids.
The move boosted investor sentiment, as it could drive Beijing to accelerate incentives for local chip production. Semiconductor Manufacturing International Corp (HK:0981), China’s largest chipmaker by volume, gained 1.4% in Hong Kong trading, while Hua Hong Semiconductor Ltd (HK:1347) surged 3.7%. In Shenzhen, NAURA Technology Group Co Ltd (SZ:002371) rose 0.8%, and chip testing equipment maker JCET Group Co Ltd (SS:600584) added 0.4%.
Most chipmakers built on Friday’s rally, though Cambricon Technologies Corp Ltd (SS:688256), a designer of AI chips, slipped 3% after jumping nearly 10% last week.
The investigations come shortly after the U.S. Commerce Department added 32 entities—23 of them Chinese—to its restricted trade list, accusing two firms of supplying sanctioned equipment to SMIC. The development coincided with high-level U.S.-China trade talks on Sunday, where officials also reportedly discussed the future of ByteDance’s TikTok, which faces a potential U.S. ban.
Chinese chip stocks have been rallying since early August, supported by rising scrutiny of U.S. semiconductor exports, especially in artificial intelligence. The sector also gained momentum last week following reports that Chinese tech leaders, including Alibaba Group (HK:9988), were testing locally sourced chips for AI development.
The escalating U.S.-China tech tensions are reinforcing Beijing’s push for semiconductor self-sufficiency, a trend that continues to fuel gains in China’s chipmaking sector.