On September 2, HUA HONG GRACE declined 3.31% in regular trading, trading at HK$118.2/share, with turnover of HK$213 million. The drop was triggered by the company's newly disclosed large-scale investment plan, which raised concerns over near-term financial pressure, compounded by broad weakness across the semiconductor sector.

On September 1, HUA HONG GRACE announced it would jointly invest US$41.7 billion in equity capital to transform its Wuxi Joint Venture III into a 12-inch wafer fabrication facility with a monthly capacity of approximately 55,000 wafers. The total project investment amounts to US$69.5 billion, with the remaining US$27.8 billion to be financed through debt. The company and its subsidiary Shanghai Hua Hong Grace will contribute approximately US$10.43 billion and US$10.84 billion respectively, retaining a 51% stake post-completion. The scale of this capital commitment weighed on sentiment as markets assessed the near-term funding burden.

Meanwhile, the semiconductor sector traded broadly lower, with BIREN TECH down 4.75%, ILUVATAR COREX down 2.84%, MONTAGE TECH down 1.90%, and SMIC down 1.67%, amplifying selling pressure on individual names.

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