For China’s ailing developers, retail frenzy greets semiconductor side-hustles

For China’s ailing developers, retail frenzy greets semiconductor side-hustlesUnprofitable real estate firms see shares soar after buying into silicon assets, and analysts weigh whether it is a safe bet or banking on a big bailout2-MIN READ2-MIN0ListenPublished: 10:30am, 23 May 2026Embattled Chinese developers have turned to a new strategy to resuscitate their ailing businesses: diversifying into semiconductor production.Certain listed property companies have seen their shares skyrocket – some by hundreds of per cent – after announcing investments in “chipmaking”. Such strategic diversification efforts have sparked a buying frenzy among retail investors in the mainland’s A-share market.“Chip-themed stocks are the new darlings of individual investors since [such stocks] play a key role in China’s technological innovation and carry the hopes of the whole nation,” said Ding Haifeng, a consultant at financial­-advisory firm Integrity, based in Shanghai. “The fanfare surrounding the companies is just a rude reminder that exchanges on the mainland could become a speculators’ market if company fundamentals are ignored.”Select VoiceSelect Speed0.8x0.9x1.0x1.1x1.2x1.5x1.75x00:0000:001.00x