Hong Kong-listed chipmakers and AI shares rallied Tuesday after Huawei unveiled a major semiconductor design breakthrough, boosting optimism over China's ability to reduce reliance on U.S. technology.
Hong Kong markets reopened after a Monday holiday, prompting investors to catch up with gains seen across mainland tech shares earlier this week.
Semiconductor Manufacturing International Corp (SMIC) shares jumped over 10%, while Hua Hong Semiconductor surged nearly 13%.
ASMPT advanced 11%, and Lenovo Group rallied 16%.
The gains follow Huawei's announcement of a new chip architecture and "Tau Scaling Law" aimed at producing advanced chips. Its new "LogicFolding" architecture will debut in Kirin smartphone chips later this year and later apply to Ascend AI processors, seen as China's main domestic alternative to Nvidia's restricted products.
Analysts expect Beijing to accelerate efforts toward a self-sufficient chip ecosystem amid escalating U.S. export controls.
