The SM3 hash algorithm is a cryptographic hash function designed by the Chinese Commercial Cryptography Administration Office (CCCAO) in order to propose new standard for digital signature generation. There is a large range of other applications using this algorithm as key derivation functions (KDFs) and random bit/number generation.
The SM3 algorithm is very close to the FIPS SHA-256 algorithm. For this reason, the IP also implements a SHA-256 algorithm.