HUA HONG GRACE shares tumbled 5.07% during intraday trading on Monday, dragged down by a broad sell-off in the semiconductor sector.

The slump was fueled by the market debut of ChangXin Technology on the STAR Market, with institutions estimating its market capitalization could balloon to 2 to 3 trillion yuan. Investors feared the mega IPO would drain liquidity from existing technology stocks, sending peers like GIGADEVICE, MONTAGE TECH, ILUVATAR COREX, and BIREN TECH lower as well. Meanwhile, HUA HONG GRACE had already been under pressure from extreme volatility in previous sessions — a limit-up surge on July 21 was followed by consecutive steep declines — and leveraged capital continued to exit, with margin net repayment exceeding 600 million yuan. The lingering short-term selling pressure further exacerbated the decline.