On July 10, Hua Hong Semiconductor rose 5.35% in regular trading, trading at HKD 212.2/share, with turnover of HKD 1.098 billion. The stock has been on a multi-day rally driven by dual catalysts: regulatory approval for a major acquisition and a significant investment bank upgrade.

On the news front, the company announced on July 8 that it received CSRC approval for its share issuance to acquire 97.4988% equity of Huali Micro at a transaction price of RMB 8.268 billion. All six preconditions of the acquisition agreement have been satisfied. The company is also authorized to raise supporting funds of up to RMB 7.556 billion for Huali Micro technology upgrades, specialty process R&D, and working capital replenishment. Upon completion, Hua Hong will gain full control of Huali Micro, achieving deep complementarity in 12-inch wafer capacity and advanced process platforms covering 65/55nm and 40nm nodes.

Additionally, Goldman Sachs issued a research report raising the company's target price sharply from HKD 174 to HKD 333 while maintaining a Buy rating, citing AI chip and data center power management chip demand growth, and projecting operating margins to improve from 1% toward a normalized 14%-17% level over time.

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