Semiconductor stocks in Hong Kong witnessed a significant pullback. At the time of writing, Montage Tech (06809) was down 11.55%, trading at HK$405.8. SHANGHAI FUDAN (01385) fell 9.75% to HK$32.02. NOVOSENSE (02676) declined 9.58% to HK$211.4. GIGADEVICE (03986) dropped 7.03% to HK$734.5. SMIC (00981) decreased by 6.63%, reaching HK$82.4.

The movement follows news that several companies, including Debang Technology and Shanghai Silicon Industry, announced share reductions by the National Integrated Circuit Industry Investment Fund on May 28. Additionally, according to Hong Kong Exchange filings, the fund's long position in SMIC has also been reduced. Reports also cited industry analysis suggesting that after a sustained rally, trading concentration in the A-share semiconductor sector has reached historically high levels, indicating potential short-term technical corrections or volatility risks.

However, it is noted that the dual drivers of robust AI demand and the pursuit of supply chain autonomy are expected to provide the industry with sustained performance realization, which could help absorb the current high valuations.