Chipmaker Hua Hong rises on STAR Market debut

Shanghai-based chipmaker Hua Hong, which completed this year's top domestic IPO by market value, rose on the first trading day on the STAR Market on Monday.

Hua Hong closed 2.04 percent higher at 53.06 yuan (US$7.4), with an intraday high of 59.88 yuan, compared with a STAR 50 Index drop of 0.71 percent on the day.

Hua Hong is the second-biggest made-to-order chipmaker on the Chinese mainland behind SMIC. The listing will help the company to improve its advanced manufacturing process and increase production capacity.

Chips are widely used in smartphones, computers, smart devices and artificial intelligence servers. China is supporting self-reliance of the integrated circuit industry in the face of United States tech sanctions on advanced chip-making technologies.

Hua Hong's Shanghai initial public offering raised 21.2 billion yuan in total, the largest IPO on the Chinese mainland so far in 2023. The chipmaker is now dual-listed in Shanghai and Hong Kong, like market leader SMIC.

It fits well with Shanghai's strategy to develop the three core industries of AI, bio-medicine and chips, as well as the national strategy to develop IT infrastructure and the digital economy.