Chinese semiconductor stocks are drawing growing scrutiny from investors after a sharp rally pushed valuations well above many global peers, raising concerns about overheating in the sector despite Beijing’s strong policy support for domestic chipmakers.
According to Bloomberg, shares of Semiconductor Manufacturing International Corp. listed on the mainland are trading at more than 120 times forward earnings, while Hua Hong Semiconductor Ltd. commands a valuation of over 150 times earnings. By comparison, US chipmaker Intel Corp. and South Korea’s Hanmi Semiconductor Co. trade at around 95 times forward earnings.
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