Shanghai, Jan 18, 2026, 08:20 CST — Market closed.
- Hua Hong Semiconductor’s Shanghai-listed Class A shares last closed up 6.9% at 140 yuan, near a 52-week high
- China’s chip shares outperformed in the last session as storage-chip and packaging names climbed
- Traders are watching Jan. 19, when China’s exchanges lift margin requirements for new leveraged stock buys
Hua Hong Semiconductor (688347.SS) Class A shares ended the last session up 6.9% at 140 yuan, and the Shanghai market is shut over the weekend. The stock ranged between 130.33 and 142.00 yuan in the session, putting it near the top of its 52-week band, while its market value stood at about 184 billion yuan, Investing.com data showed. (Investing)
The move matters because China’s rally has drawn a regulator response, and chip names sit close to the centre of it. Chinese stock exchanges will raise the minimum margin requirement for new borrowings to 100% from 80% from Jan. 19, after the securities regulator pledged tighter market monitoring and a crackdown on excessive speculation. (Reuters)
On Friday, the Shanghai Composite slipped 0.26% while the STAR 50 index rose 1.35%, with chip shares among the few bright spots, Securities Times reported. It pointed to a jump in storage-chip names and advanced packaging plays, with some stocks hitting fresh highs. (STCN)
Securities Times also cited a Counterpoint Research report saying the global memory market had entered a “super bull market”, driven by demand for AI computing and server capacity. DRAM (a type of working memory used in servers and PCs) and NAND flash (used for storage in phones and data centres) have become a trading hook for China’s chip complex in recent weeks. (STCN)
For Hua Hong, investors are still tracking its deal pipeline as much as the tape. A company filing showed it plans to buy 97.4988% of Shanghai Huali Microelectronics for 8.27 billion yuan, paid entirely in newly issued A shares, and to raise up to 7.56 billion yuan in supporting funds for projects and working capital, including debt repayment.
That transaction still needs shareholder approval and regulatory sign-off. The filing said the equity issuance and fundraising plan would be subject to review by the Shanghai Stock Exchange and registration by the China Securities Regulatory Commission, among other steps.
A shift in leverage rules could still shake momentum names, and chip stocks have been a popular place to borrow. “Investors should reduce their leverage levels to guard against the risk of volatility,” Wang Jun, a strategist at BOC International in Shanghai, was quoted as saying by the South China Morning Post. (South China Morning Post)
The risk, for Hua Hong holders, is that a tighter margin regime cools the trade just as the stock pushes into a crowded zone near its highs. If the chip rally loses its footing — or if deal approvals and timetables slip — fast money can leave as quickly as it came.
When trading resumes, the immediate catalyst is Monday, Jan. 19, when the new 100% margin requirement kicks in. Traders will also watch for any fresh filings that put dates around shareholder votes and regulator review milestones for Hua Hong’s Huali Microelectronics transaction.
