Chinese Chipmakers Soar on Anticipated Government Support

Chinese chipmakers, led by SMIC, experienced a significant stock market surge, driven by investor speculation that the Chinese government will implement further policies and financial aid to bolster the semiconductor industry, a sector crucial to China`s geopolitical aspirations. This surge, mirroring a broader market upswing, reflects renewed confidence in the Chinese economy following government promises of support. Investors anticipate that Beijing will prioritize the semiconductor industry, alongside efforts to stimulate the property and financial sectors, given its importance in the ongoing technological rivalry with the US. While specific details are awaited, China has already committed substantial resources to chip development, aiming to close the technological gap with Western competitors.