Heavy news! SMIC International has been called upon to increase its holdings!
Gather semiconductor industry information, technology trends, and development trends!
Recently, SMIC International Semiconductor Manufacturing Co. announced that E Fund SSE STAR 50 Index Exchange Traded Fund increased its holdings of the company's domestic shares by 9.6162 million shares on October 10th. After the increase, its holdings reached 108,702,007 shares, accounting for 5.47% of the company's domestic total share capital and 1.36% of the total share capital. This increase did not change the fact that SMIC International has no controlling shareholder or actual controller. E Fund SSE STAR 50 Index ETF aims to closely track the SSE STAR 50 Index, with SMIC International as one of its index constituent stocks, and its shareholding changes are based on investment strategy.
Recently, the number of shares of ETFs such as E Fund SSE STAR Market 50 ETF has increased significantly, especially during the period from September 30 to October 11. Industry insiders predict that with the continuous increase in ETF shares, there may be more cases of ETFs increasing their holdings in listed companies in the future, and even the possibility of ETFs taking a controlling stake in listed companies. However, public fund professionals point out that if an ETF takes a controlling stake in a listed company, they would need to give advance notice before selling the stocks subsequently, and would reduce their allocation to the stock after acquiring a controlling stake.
With the increasing size of ETFs, their impact on the market and listed companies is becoming increasingly significant. Taking SMIC (Semiconductor Manufacturing International Corporation) as an example, four of its top ten shareholders are ETFs, indicating the growing importance of ETFs in the market. In the future, the expansion of ETFs will play a more important role in the stability of the market and the development of listed companies. At the same time, investors should also closely monitor the movements of ETFs to better grasp market investment opportunities.
Although the chip sector has experienced a recent pullback, many chip companies have seen a substantial increase in performance, such as Rui Chip, Weir Corporation, and Texas Instruments. The chip sector has benefited from strong sales of products like mobile phones and automotive electronics, making it one of the rare sectors with strong fundamental growth this year. Therefore, if stock prices fall, the chip sector still has demand for rebound, and investors may consider buying again.
In conclusion, the news of increased holdings from ETF and significant growth in stock-based ETF size for SMIC has brought positive signals to the market. Despite the recent correction in the chip sector, the high growth potential of its fundamentals still attracts investors' attention. Investors should closely monitor market trends and ETF movements to seize investment opportunities.
▎Previous Recommendations
Notice on the Collection of "2024 China Semiconductor Packaging and Testing Internal Journal"
Notice on Solicitation of "2024 China Semiconductor Packaging and Testing Quarterly"