Shares of Hua Hong Grace (SEHK: 01347) surged more than 19%, reaching a historic peak during the session.

The stock was last seen trading 17.14% higher at HK$194.8, with a turnover of HK$9.904 billion.

Catalyst for the Move

The significant price movement follows a recent company announcement regarding a planned acquisition.

The firm intends to acquire a 97.4988% stake in Huali Microelectronics by issuing new shares to several entities, including Shanghai Huahong (Group) Co., Ltd., and to raise supporting capital.

This transaction received approval from the Shanghai Stock Exchange's restructuring committee during a review meeting held on June 18, 2026.

Analyst Perspective

Analysts have highlighted the company's position as a leading domestic specialty process wafer foundry.

It is expected to benefit significantly from the dual drivers of expanding 8-inch and 12-inch production capacity and the injection of Huali Micro assets.

This positions the company to deeply capitalize on the restructuring of local supply chains and the rapidly growing demand for AI edge applications.