SMIC's stock declined sharply during intraday trading, falling 5.11% as part of a broader downturn in semiconductor stocks. The movement reflects sector-wide concerns impacting multiple chip manufacturers in the Hong Kong market.

The decline follows reports that major memory chip manufacturers including Samsung, SK Hynix, and Micron have collectively tightened their order review processes. These companies are implementing stricter due diligence on clients, including verifying end-user identities, confirming actual demand volumes, and questioning order authenticity to mitigate potential market volatility caused by excessive orders or chip hoarding.

Additional market sentiment was influenced by recent comments from industry leaders, with Jensen Huang noting he has not yet received any orders for H200 chips from Chinese customers. Analysts have previously suggested that potential easing of restrictions on advanced chips like the H200 would have limited impact on domestic computing power industries due to differing application scenarios between training-focused chips and China's focus on smaller models and inference applications.