HUA HONG GRACE stock plummeted 5.05% during intraday trading on Tuesday, reflecting heightened selling pressure across Hong Kong’s semiconductor sector.

The decline comes as the market continued to absorb the fallout from ChangXin Technology’s blockbuster debut on the STAR Market. The mega IPO, which saw shares surge over 471% and pushed the company’s market capitalization to 3.31 trillion yuan, has raised concerns about a liquidity drain from existing technology stocks. Institutions have been reducing holdings in liquid semiconductor leaders to reallocate capital toward ChangXin, intensifying short-term pressure on peers. Other chip stocks, including GigaDevice and Montage Technology, also recorded significant declines.

Additionally, HUA HONG GRACE has faced persistent volatility following a 20% daily limit surge on July 21, after which the stock entered a series of sharp pullbacks. Leveraged capital has continued to exit, with net margin repayments exceeding 600 million yuan, suggesting that short-term selling pressure remains incompletely absorbed.