SMIC's recent moves have created quite a spectacle in the market. The company announced a major acquisition one day, only to see its stock price plummet the next, with market capitalization evaporating by nearly 40 billion yuan. Is this a bottom-fishing opportunity or a capital market trap?

Following the acquisition announcement, SMIC's stock experienced a dramatic "high dive." On September 9, after resuming trading, SMIC's share price plunged directly, closing at 102.99 yuan per share with a sharp decline of 10.26%. In a single day, 36.875 billion yuan in market value evaporated, leaving investors stunned.

The situation stems from an acquisition deal. Before the trading halt, SMIC planned to acquire the remaining 49% stake in SMIC North (Beijing Semiconductor Manufacturing International North Corporation) at 74.2 yuan per share through a private placement, achieving 100% control. The company stated this move aims to improve asset quality, enhance business synergy, and promote long-term development. Essentially, in China's current semiconductor industry "battlefield," companies need to unite rather than compete internally.

SMIC North is no small player. Established in 2013, it specializes in 12-inch integrated circuit wafer foundry services. In 2024, it achieved net profits of 1.682 billion yuan, nearly half of SMIC's total profit of 3.699 billion yuan, making it a solid "growth stock."

Logically, such a significant acquisition should have sent the stock soaring, but instead it took a dive. Market analysts believe several factors contributed to this outcome. First, SMIC's stock price was already at elevated levels before the September 1 trading halt, having risen nearly 25% in the last two weeks of August. The higher the stock climbs, the more precarious its position becomes.

Second, SMIC's trading resumption timing was unfortunate, coinciding with overall market corrections and weak semiconductor sector performance. Additionally, profit-taking by investors who wanted to "secure gains" put further pressure on the stock price.

However, the reversal came swiftly. On September 10, SMIC's stock rebounded against the trend, closing at 103.91 yuan per share, up 0.89%. On September 11, it closed at 110.28 yuan per share, gaining 6.13%.

What does this indicate? The semiconductor industry is all about volatility and long-term plays. Short-term fluctuations are not concerning; the real theme is long-term domestic substitution. Time will tell whether this acquisition proves beneficial.

SMIC's recent moves resemble a "roller coaster" in the semiconductor world - driven by sentiment in the short term, but ultimately dependent on fundamental strength in the long run. Stock prices can plummet confusingly in one day and recover rapidly the next, demonstrating that domestic substitution remains the ultimate theme in China's A-share market.

The question remains: Do investors view SMIC's acquisition as a "bottom-fishing opportunity" or a "risk signal"?