Chinese chip stocks are soaring on Beijing’s push for technological self-reliance, but investors are increasingly worried the rally is outrunning fundamentals. Bloomberg data shows mainland bellwethers trading at extreme forward earnings multiples, including SMIC above 120x and Hua Hong above 150x, compared with Intel around 95x. Concerns intensified after Hua Hong’s earnings and guidance missed estimates and SMIC posted weaker net income. Meanwhile, heavy turnover and rising margin debt suggest crowded, speculative positioning.
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