Chinese chip stocks gained $13 billion on Monday as traders expect Beijing to extend stimulus support to the semiconductor industry on Tuesday.

Goldman Sachs has upgraded its expectations for Chinese stocks, telling investors that shares could go a further 20 per cent higher after a historic rally following Beijing’s pledge to do more to stimulate the economy.

Traders are closely watching for additional policy measures as Beijing has signaled a sense of urgency in bringing its economy back on track.

The interest rate cuts and further economic stimulus announced last week by Chinese authorities continue to boost the stocks representing interests in that nation.