Chinese semiconductor shares moved higher on Monday, with major producers and equipment makers seeing solid gains as investor optimism around artificial intelligence-driven demand continued to influence trading.
Semiconductor Manufacturing International Corp (HK:0981), the country's largest chipmaker by production, rose 5.6% in Hong Kong trading. Peer Hua Hong Semiconductor Ltd (HK:1347) recorded a similar advance in the same session.
On mainland exchanges, semiconductor-related names also outperformed. Hygon Information Technology Co Ltd (SS:688041) climbed 6.4%, while NAURA Technology Group Co Ltd (SZ:002371) added 7.2%.
Market momentum from the United States contributed to the move. The Philadelphia Semiconductor Index had surged to a record high the prior Friday, driven in part by outsized gains at Intel Corporation (NASDAQ:INTC), and that strength carried over into Asian trading.
Investor optimism toward Chinese chipmakers has been supported by expectations of stronger AI-driven demand for semiconductors. Sentiment received an additional lift following the recent public debut of a new model from startup DeepSeek two weeks ago, an event that has kept attention on domestic AI capability.
Over the weekend, reports indicated that DeepSeek is seeking to raise up to 50 billion yuan ($7.35 billion) in its first funding round. If completed at that size, the round would stand to be the largest-ever initial funding round by a Chinese AI company, according to the reports.
Earlier media reports also noted that major technology firms, including Tencent Holdings Ltd (HK:0700) and Alibaba Group Holding Ltd (HK:9988), were lining up to invest in the DeepSeek round.
Market context - The Monday rally among Chinese chip stocks followed a strong close in U.S. semiconductors, illustrating how moves in major overseas markets can feed through to Asian trading. Within China, both producers and equipment suppliers participated in the advance, reflecting broad-based buying interest tied to AI-related demand expectations.
Outlook considerations - While this session showed renewed enthusiasm for semiconductor names, market participants remain focused on developments around AI product rollouts and large-scale financing events within the domestic tech ecosystem.