Hua Hong Semiconductor (01347.HK) saw its shares plummet by 7.92% in Monday's trading session, as part of a broader selloff in the semiconductor sector. The significant drop comes amid a challenging day for chip stocks in the Hong Kong market, with several major players experiencing notable declines.

The semiconductor industry faced widespread pressure, with Semiconductor Manufacturing International Corporation (SMIC) also registering a substantial 5% decrease. Other chip-related companies were not spared, as HG Semiconductor and Shanghai Fudan Microelectronics both saw their shares slide by approximately 1%.

While the exact reasons for the sector-wide decline were not immediately clear, the simultaneous drop across multiple chip stocks suggests broader market concerns or industry-specific factors at play. Investors may be reacting to global semiconductor market conditions, supply chain issues, or geopolitical tensions affecting the tech sector.

The sharp decline in Hua Hong Semiconductor's stock price, exceeding the reported 6% drop from earlier in the session, indicates that selling pressure intensified throughout the day. As one of China's leading semiconductor foundries, Hua Hong's performance is often seen as a bellwether for the broader Chinese chip industry, making this significant drop particularly noteworthy for market observers and investors in the tech sector.