China's Stocks Extended Weekly Losses, SMIC Quarterly Profit Tripled

Li Chen
14 Aug, 2026
Hong Kong

China's indexes struggled to advance on Friday as advanced U.S. technology was sent to China and more trade barriers were raised for U.S.-China trade, and tensions flared up. 

The Hang Seng Index decreased 0.8%, and the mainland-focused CSI 300 Index edged down 0.1% despite a rebound in semiconductor stocks. 

SMIC edged higher after the advanced computer chip maker reported that its second quarter profit more than tripled from a year ago. 

The sharp jump in revenue and earnings confirmed the rising demand for AI-related chips and that the latest AI investment supercycle is likely to last longer than previously estimated. 

Makers of electronic and optical components and advanced compute and memory chips traded higher and extended weekly gains after SMIC's results were in line with market expectations. 

The U.S. announced new tariffs and trade restrictions targeting several Latin American countries and imposed 100% tariffs on imported drones and related components from China. 

The U.S. renewed its push to stem the flow of the advanced U.S. technology to China and raised more trade barriers for the imported electrical goods from China and transshipments through Mexico and Latin American nations. 

 

China Indexes and Stocks 

The Hang Seng Index decreased 0.8% to 25,175.06, and the CSI 300 Index edged down 0.1% to 4,658.48. 

For the week, the Hang Seng Index decreased 2.7% and the CSI 300 Index declined 0.9%. 

SMIC jumped 2.6% to HK $68.95 after China's largest semiconductor company reported solid second-quarter results. 

Revenue soared 36% to $3 billion, and net income soared 260% to $479.2 million. 

GigaDevice Semiconductor increased 2.3% to HK $512.50, Eoptolink Technology added 3.4% to ¥444.49, and Zhongji Innolight advanced 2.4% to HK $1,168.0. 

Cambricon Technologies decreased 1.5% to ¥1,089.50, and Hygon Information declined 1.9% to ¥280.62.