A searing rally in Chinese chip stocks is facing a reckoning as investors worry intensifying tensions with the US may strangle the sector’s growth despite Beijing’s efforts to achieve self reliance.
A FactSet gauge tracking the nation’s chip-related firms slumped more than 5% Friday, trimming the year’s advance to 15%. Advanced Micro-Fabrication Equipment Inc. and the nation’s largest chip foundry, Semiconductor Manufacturing International Corp., have still surged more than 50% compared with a 4.2% gain in the onshore CSI 300 benchmark.
