Analysis of the Impact of Montage Technology's Secondary Listing in Hong Kong on Valuations of Semiconductor Chinese Concept Stocks and Hong Kong Stock Market Liquidity

Based on collected market data and in-depth analysis, the following is a complete report on the impact of Montage Technology’s secondary listing in Hong Kong:

Montage Technology (688008.SS), a leading Chinese semiconductor design enterprise, has passed the listing hearing on the Main Board of the Hong Kong Stock Exchange (HKEX), and plans to raise US$800 million to US$1 billion (approximately HK$6.2 billion to HK$7.8 billion). If the US$1 billion target is reached, it will be the largest IPO transaction in the Hong Kong market since Zijin Gold International’s US$3.53 billion listing in September 2024 [0][1]. CICC, Morgan Stanley, and UBS serve as joint sponsors for this listing, which adopts the A+H dual listing model.

The listing of Montage Technology’s H-shares will attract more international institutional investors, and is expected to achieve more reasonable international valuation pricing. The company’s current A-share PE (TTM) is 72.03x, P/B is 12.14x, ROE reaches 17.31%, and net profit margin is as high as 40.31% [0]. This valuation level reflects the market’s recognition of high-growth expectations for the AI chip track. After the H-share listing, international capital will provide a new pricing perspective, which is expected to narrow the valuation gap with peer companies listed in the US stock market.

As a global leader in memory interface chips, the H-share pricing of Montage Technology will provide an important valuation reference for Hong Kong-listed semiconductor targets such as SMIC (0981.HK) and Hua Hong Semiconductor (1347.HK) [2]. In 2025, the Hong Kong stock semiconductor sector rose by 135%, leading all industries in the market, and the valuation recovery trend is expected to continue.

The company’s net profit for the first half of 2025 is expected to reach RMB 1.1-1.2 billion, a year-on-year surge of 85.5%-102.36%, hitting a record high [2]. Coupled with the surge in global AI infrastructure investment (capital expenditures of giants such as NVIDIA and AMD increased by more than 40% year-on-year), the demand for memory interface chips is strong, and the penetration rate of DDR5 continues to rise, providing solid support for valuation.

If Montage Technology successfully raises US$1 billion, it will directly inject a large amount of incremental capital into the Hong Kong stock market. The Hong Kong IPO market performed strongly in 2025, with total annual financing reaching HK$285.6 billion, a year-on-year increase of 224%, and 117 new listings completed, a year-on-year increase of 67% [1][3]. The average daily turnover of the Hong Kong cash market in the first 11 months of 2025 reached HK$23.07 billion, a year-on-year increase of 43%, hitting a record high [1].

In 2025, the semiconductor sector rose by 135%, far exceeding industries such as medical biology (72%), non-bank finance (58%), and internet (31%), becoming one of the most capital-favored sectors in the Hong Kong stock market [4]. The listing of Montage Technology as a sector leader will further strengthen capital’s allocation preference for the semiconductor track, forming a positive cycle.

Deloitte predicts that there will be approximately 160 new listings in the Hong Kong IPO market in 2026, with financing scale of no less than HK$300 billion, including at least 7 super-large new listings (each ≥HK$10 billion) [3]. Currently, there are over 320 applications under review, with sufficient reserves, and financing from A+H listing projects accounts for approximately 50% of annual financing, becoming the mainstream model.

Following Montage Technology, GPU leaders such as Biren Technology and Iluvatar CoreX, AI large model star companies such as Zhipu AI and MiniMax, and A+H semiconductor giants such as GigaDevice and OmniVision are following suit [2]. Semiconductor Chinese concept stocks are shifting from the “single bridge of US stocks” to the “main battlefield of Hong Kong stocks”, and dual listing effectively reduces geopolitical risk exposure.

A research report from CICC pointed out: “The current valuation depression in Hong Kong stocks provides an allocation window for long-term capital, and Montage is expected to become a new benchmark for international capital to overweight China’s hard technology” [2]. The technology market trend is expected to spread from computing power infrastructure to the application side, forming a more complete investment ecosystem.

In 2025, Hong Kong’s IPO financing ranked first in the world, and the HKEX processed 560 listing applications for the Main Board and GEM [1][3]. Policy-level reform measures such as encouraging leading mainland enterprises to list in Hong Kong and simplifying the listing process for large A-share listed companies continue to advance, and market liquidity and valuation levels are expected to further improve.

• Market Volatility Risk
  : The global semiconductor cycle is uncertain
• Valuation Digestion Risk
  : The current 72x PE may come under pressure if performance growth falls short of expectations
• Liquidity Diversion
  : Concentrated issuance of large-scale IPOs may cause short-term capital pressure on the existing market
• Geopolitical Risk
  : The Sino-US tech competition continues, and policy risks such as export controls need to be monitored

Montage Technology’s secondary listing in Hong Kong will have a positive impact on the valuations of semiconductor Chinese concept stocks and Hong Kong stock market liquidity. In terms of valuation, the H-share listing introduces international capital pricing, which is expected to raise the overall valuation center of the industry; in terms of liquidity, the record-breaking fundraising scale coupled with sector momentum will attract incremental capital; in terms of structure, the A+H listing model becomes mainstream, and Hong Kong gradually establishes itself as the preferred listing destination for China’s hard technology enterprises. In the long run, this listing will further strengthen Hong Kong’s competitiveness as a financing hub for China’s technology enterprises.

[0] Jinling API Data - Montage Technology (688008.SS) Company Profile and Financial Indicators

[1] Hong Kong Exchanges and Clearing Limited - 2025 Review: Average Daily Turnover of Cash Market Reached HK$23.07 Billion in First 11 Months, Up 43% YoY (https://www.hkex.com.hk/News/News-Release/2025/251222news)

[2] Caifuhao - 600% in 5 Years, Montage Technology: The World’s No.1 Leader in AI Computing Capacity (https://caifuhao.eastmoney.com/news/20260105204602638398600)

[3] Deloitte China - 2025 Review and 2026 Outlook for Mainland China and Hong Kong IPO Markets (https://www.deloitte.com/cn/zh/about/press-room/mainland-and-hk-ipo-markets-2025-review-2026-outlook.html)

[4] Hua Jing Information - 2025 Hong Kong Stock Market Sector Performance Analysis (https://www.hkej.com)