Chip stocks surge, STAR 50 index jumps nearly 4% in morning session

NBD Reporter | Liu Mingtao NBD Editor | Peng Shuiping

Market Overview

Today, the three major A-share indices fluctuated upward. As of the morning close:

• Shanghai Composite Index: Rose 1.04% to 3,916.07 points
• Shenzhen Component Index: Gained 1.52% to 13,613.48 points
• ChiNext Index: Climbed 2.11% to 3,368.03 points
• STAR 50 Index: Surged 3.93% to 1,669.34 points
• BSE 50 Index: Increased 1.33% to 1,039.61 points

Liquidity Operations

On September 18, the People's Bank of China (PBOC) conducted:

• A 7-day reverse repo operation totaling 463.3 billion yuan via fixed-rate, quantity-tendered bidding, fully meeting primary dealers' demand at an operating rate of 1.4%, with both bid volume and awarded volume reaching 463.3 billion yuan.
• A 14-day reverse repo operation worth 100 billion yuan using fixed-quantity, interest-rate tendering, and multiple-price award methods.

Wind data showed that 604 billion yuan in reverse repos matured on the same day, resulting in a net liquidity withdrawal of 40.7 billion yuan. This marks the PBOC's resumption of 14-day reverse repo operations in its open market after more than seven months.

Policy and Regulatory News

Pharmaceutical Industry Plan

On September 18, ten departments—including the Ministry of Industry and Information Technology (MIIT), the National Development and Reform Commission (NDRC), the Ministry of Natural Resources, the Ministry of Agriculture and Rural Affairs, the Ministry of Commerce, the National Health Commission, the Ministry of Emergency Management, the National Healthcare Security Administration, the National Administration of Traditional Chinese Medicine, and the National Medical Products Administration—jointly released the "15th Five-Year Plan for the Development of the Pharmaceutical Industry."

Key development goals through 2030 include:

• R&D and application of biopharmaceuticals ranking among the world's leaders
• Full unleashing of innovation-driven efficiency
• Systematic breakthroughs in key core technologies in priority areas
• Accelerated transformation of the biopharmaceutical industry into a new pillar industry of the national economy

Housing Provident Fund Safeguards

Zhang Xuetao, Director-General of the Housing Market Supervision Department at the Ministry of Housing and Urban-Rural Development, stated at a State Council Information Office press conference that efforts will be made to strengthen safeguards for housing provident fund security. Measures include:

• Enhancing institutional regulations
• Improving management mechanisms
• Diversifying supervisory tools

These steps aim to ensure the safety of housing provident fund funds.

Quantum Technology Standards

The State Administration for Market Regulation is strengthening systematic planning and concentrating efforts on formulating a batch of national standards for core quantum devices. Among these:

• Two new national standards have been released:
• "Technical Specifications for Quantum Squeezed Light Sources"
• "Performance Test Methods for Periodically Poled Lithium Niobate Quantum Frequency Conversion Devices"
• Four additional national standard projects have been newly approved
• Several ongoing standards continue to progress steadily

These efforts aim to accelerate the establishment and refinement of China's national standards system for quantum technology.

Sector Performance

Leading Sectors

• Semiconductors
• Automotive chips
• AI chips
• High-bandwidth memory (HBM)
• Advanced packaging
• Storage chips

Underperforming Sectors

• Commercial vehicles
• Complete automobiles
• Glass and fiberglass
• Coal mining

Industry Insight: Storage Sector

The storage industry is currently experiencing a super-cycle driven by AI computing power, characterized by tight supply-demand dynamics and simultaneous increases in both volume and prices.

On the demand side:

• Rapid iterations of large AI models and accelerated construction of computing infrastructure are significantly boosting demand for HBM, DRAM, and enterprise-grade flash memory in high-end servers and AI inference scenarios.
• The widespread adoption of edge AI devices is further expanding incremental opportunities for storage, sustaining robust industry growth.

Analyst Reports on Key Stocks

1. ASR Microelectronics

The company is one of the few domestic suppliers of cellular baseband chips. Its chip customization business has entered a high-growth phase, and smartphone SoCs offer long-term growth potential. — Huatai Securities

2. Puya Semiconductor

In the NOR Flash and EEPROM segments, the company has leveraged strong product competitiveness to seize industry opportunities, growing into China's second-largest player in NOR and EEPROM markets. It is actively expanding into high-capacity NOR and MCU products and plans to acquire SHM, a scarce asset in 2D NAND, through a 100% acquisition. This move aims to create complementary product portfolios and sales channels, potentially opening up further growth avenues. — Zhongtai Securities

3. Huatian Technology

Driven by emerging demands from AI and new energy vehicles, industry sentiment is recovering. The company is experiencing renewed vitality, with performance returning to a growth trajectory. — Hualong Securities

4. JCET Group

The company has deep expertise in packaging and testing, currently focusing on key application areas while continuously optimizing its business structure. — GF Securities