Shanghai, Feb 2, 2026, 10:27 GMT+8 — Regular session underway
- TongFu Microelectronics A-shares fell 3.2%, hitting 50.41 yuan in morning trading
- The firm unveiled a 200 million yuan sci-tech bond last week, set at a 1.77% yield.
- Traders digest conflicting factory reports ahead of a packed week of global earnings
TongFu Microelectronics’ A-shares dropped 3.2% to 50.41 yuan during morning trading in Shenzhen, down from a prior close of 52.06 yuan, according to data from Investing.com. The stock kicked off the session at 50.70 yuan and fluctuated between 50.40 and 50.95 yuan, with around 8.54 million shares changing hands.
The drop shifted focus to a less visible part of the chip supply chain: TongFu handles packaging and testing of integrated circuits, a step that follows semiconductor design and wafer fabrication. The firm notes its offerings support AI, high-performance computing, and other volatile sectors prone to sharp order fluctuations.
Why it matters now: cash comes at a price, and the market is wrestling with whether exports will sustain factory activity into the year’s start. For chip companies, that question runs alongside funding demands, with investors sifting through filings for any hints on either front.
On Jan. 29, the company announced it had issued a 200 million yuan science and technology innovation bond—a 270-day commercial paper note traded in the interbank bond market—carrying an interest rate of 1.77%. The note (012680312.IB) will mature on Oct. 26, with China Merchants Bank serving as lead underwriter. The company also confirmed it received registration acceptance notices from the National Association of Financial Market Institutional Investors for issuing ultra-short-term commercial paper and medium-term notes under a planned ceiling of 30 billion yuan.
Broader data offered little comfort. The private RatingDog purchasing managers’ index (PMI) — with 50 marking expansion — nudged up to 50.3 in January, according to S&P Global, buoyed by a rebound in export orders. By contrast, the official PMI from the National Bureau of Statistics dipped to 49.3 as new orders weakened. “If cost pressures persist while demand recovery is limited, profit margins will remain under pressure,” said Yao Yu. Ting Lu at Nomura added that Beijing “will have to do much more” to keep growth above 4.5%. Reuters
Packaging and testing rarely deliver high margins, even in strong quarters, and input costs can fluctuate. If overseas demand fades after holiday-driven surges, suppliers such as TongFu face pressure from both weaker volumes and stricter pricing demands from big clients.
Global risk appetite wobbled early in the week following volatile commodity swings. Investors now brace for a slew of central bank meetings and a flood of earnings reports. Alphabet, Amazon, and AMD lead the pack of bellwethers, with Friday’s U.S. payrolls data also in focus for clues on AI investment and interest rate trends.
Investors will zero in on how the company deploys the bond proceeds and if it plans to issue more under the 30 billion yuan registration. Even a hint of additional demand could shake the stock more than a macro headline on a quiet morning.
The next clear marker on the calendar is Feb. 17, when the Lunar New Year holiday kicks off and factories usually ease up. Traders in TongFu will be closely monitoring if orders and volumes gain momentum before the break—or if the stock remains stuck in a post-drop holding pattern.
