On September 8, HUA HONG GRACE declined 3.13% in regular trading, trading at 111.4 HKD/share, with turnover of 1.265 billion HKD. The stock gave back part of the prior session's 5%-plus rally driven by its formal inclusion in the Hang Seng Index and the completion of the Huali Microelectronics 97.5% equity transfer.
Market concerns continue to center on the company's massive capital expenditure plan. HUA HONG GRACE announced a USD 69.5 billion investment to build a Wuxi Phase 3 12-inch specialty process production line with monthly capacity of 55,000 wafers, with the group contributing approximately USD 21.27 billion. The funding gap and near-term financial pressure remain key investor worries ahead of the September 23 extraordinary general meeting, where the joint venture investment agreement will be put to a shareholder vote.
Broader semiconductor sector weakness amplified selling pressure, with peers including SMIC down 4.1% and BIREN TECH down 6.46%.
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