HUA HONG GRACE (01347) tumbled 5.06% during intraday trading on Wednesday, extending its decline as the siphon effect from ChangXin Technology's blockbuster listing on the STAR Market continued to pressure existing semiconductor stocks across the board.

The sharp drop was primarily driven by mounting concerns over liquidity diversion following ChangXin Technology's debut, which saw the company achieve a staggering total market capitalization of 3.31 trillion yuan, making it the highest-valued company on China's A-share market. Institutional investors have been actively reducing their holdings in liquid semiconductor leaders like HUA HONG GRACE to reallocate capital toward the newly listed chip giant, creating sustained short-term selling pressure across the sector.

Compounding the sell-off, leveraged funds have been flowing out of HUA HONG GRACE, with net margin repayment exceeding 600 million yuan, indicating that short-term selling pressure remains undigested. The broader semiconductor sector weakened in sympathy, with peers such as Iluvatar CoreX falling 6.54%, GigaDevice down 5.67%, and Montage Tech declining 3.75%.