Shares in the semiconductor sector, led by China’s Semiconductor Manufacturing International Corp. (SMIC), surged by up to 28% on Monday, reaching their highest levels in four years.

This rally added US$13 billion to the sector’s market capitalization as investors speculated that Beijing may announce policy and financial support for an industry pivotal to China’s technological growth and geopolitical ambitions.

Since last Thursday’s trading session, SMIC’s stock has increased by approximately 65%, boosting its market value by about US$10.7 billion.

Smaller rivals, including Hua Hong Semiconductor and Shanghai Fudan Microelectronics, collectively gained over US$2 billion during the same period.

The semiconductor sector’s resurgence aligns with a broader recovery in China’s financial markets following stimulus measures announced in late September.

Authorities introduced multiple initiatives designed to strengthen the world’s second-largest economy, including a commitment of up to US$340 billion to stabilize the stock market.