Hua Hong Grace (01347) saw its share price climb more than 5% during the morning session, with shares up 5.01% at HK$115.20 as of the time of writing. The stock recorded a trading turnover of HK$2.112 billion.

The inclusion follows an announcement from Hang Seng Indexes Company dated August 21, confirming that Hua Hong Grace would be added as a constituent stock of the Hang Seng Index, a change that officially takes effect today (September 7).

Kaiyuan Securities has advised investors to focus on the Fab segment, CP testing, and newly added equipment areas. In terms of Fab operations, the "Tao's Law" directly drives demand for advanced process wafers, with design innovations under this framework largely stemming from collaborative R&D conducted by front-end wafer fabrication plants.

Additionally, Hua Hong Grace recently disclosed plans to construct its Phase III project in Wuxi. The project carries a total investment of US$6.95 billion, utilizing the existing production and power facilities at the company's Wuxi base to build new cleanrooms and power systems. It will also be equipped with corresponding process equipment, metrology and auxiliary tools, automated material handling systems, and production management systems. The initiative adheres to a strategy of independent R&D combined with selective introduction of external technologies, aiming to establish a distinctive specialty process technology platform and construct a 12-inch specialty process production line with a monthly capacity of 55,000 wafers.