China Likely to Unveil $143 Billion Semiconductor Package

On Tuesday, Reuters reported that China could be working on a $143 billion package for its semiconductor industry in order to counter recent U.S. moves.

The report stated that China is likely to roll out what could be its biggest financial incentive package over the past five years. This package is likely to be mainly in the form of subsidies and tax credits to boost Chinese semiconductor production.

Chinese semiconductor companies including Semiconductor Manufacturing International Corp (SMIC) and Hua Hong Semiconductor Ltd listed on the Hong Kong Stock Exchange were up on Tuesday.

The ProShares Ultra FTSE China 50 (XPP) has declined by more than 50% in the past year.