Shanghai, Jan 20, 2026, 09:09 (GMT+8) — Premarket
Hua Hong Semiconductor Ltd’s yuan-denominated Class A shares on Shanghai’s STAR Market (688347.SH) will face scrutiny at Tuesday’s open after slipping 3.5% to 135.08 yuan in the last session. The stock has surged roughly 188% over the past year, narrowing room for any sharp changes in risk appetite. 1
The pullback comes as Beijing clamps down on the short-term trading that fueled gains in tech and chip stocks. According to Reuters, China’s securities regulator has ordered brokers to remove client-dedicated servers from exchange data centres, a move that would blunt the advantage of high-frequency traders—algorithm-driven firms executing trades in milliseconds. “They do want to keep the markets focused on investment, as opposed to speculation,” said Shane Oliver, chief economist at AMP. 2
Tariff news is back on the radar overseas, shaking semiconductor sentiment. President Donald Trump announced plans to slap an extra 10% tariff starting Feb. 1 on products from eight European nations, with that rate jumping to 25% come June 1 if no agreement is struck, Reuters reported. Andrew Kenningham, chief Europe economist at Capital Economics, expressed skepticism the tariffs would go ahead “as advertised.” 3
In Hong Kong, mainland investors kept their focus on the chip sector. On Monday, they snapped up a net HK$393.2 million worth of Hua Hong’s H-shares through the southbound route of Stock Connect. Semiconductor Manufacturing International Corp pulled in the largest net inflow, according to AASTOCKS data. Stock Connect allows investors from mainland China and Hong Kong to trade shares in each other’s markets via their brokers. 4
Shanghai A-shares and Hong Kong H-shares often respond to different triggers when policy risk dominates. Their investor bases don’t overlap much, and liquidity can shift rapidly.
Hua Hong operates as a contract chipmaker, or foundry, producing chips for various clients. Foundries feel the impact of shifts in tech risk appetite keenly, since their forecasts depend on orders spanning numerous end-markets.
Hua Hong is working on a share-based acquisition of 97.4988% of Shanghai Huali Microelectronics Corp, a 12-inch wafer foundry, while aiming to raise up to 7.56 billion yuan in supporting funds, according to a recent update with the Hong Kong exchange. The company also requested to push back the deadline for sending out the deal circular to Jan. 30, 2026, at the latest.
On Tuesday, traders will watch early turnover closely for signs that the crackdown on ultra-fast strategies is impacting intraday liquidity. The highest-beta stocks might be the first to feel the effects of any new leverage rules.
But here’s the risk: if liquidity dries up as speed-driven trading pulls back, price swings could grow sharper, and crowded chip trades might unravel fast once policy uncertainty climbs.
Hua Hong’s next key date is the Jan. 30 deadline for the Huali deal circular. Across the market, traders will be watching tariff updates ahead of Trump’s Feb. 1 deadline.
