Archive · 28 Sep 2026
Chinese Stocks Hit One-Year Low as Chip Firms Slide
Chinese stocks fell sharply on Monday and reached their lowest level in about a year.
Technology companies were among the biggest losers.
Several chip and optical companies fell by at least 5%.
Investors heard that Beijing might let some Chinese companies buy certain Nvidia chips.
This could make competition harder for Chinese chipmakers.
Four U.S. senators also proposed limiting two Chinese optical companies from selling to the U.S. government.
The United States and China agreed to extend their trade ceasefire until January.
However, some investors thought the agreement did not provide enough new help for markets.
High oil prices, interest-rate uncertainty, and an upcoming holiday also made investors more cautious.
The CSI 300 Index fell between 2.2% and 2.4% on Monday, taking Chinese shares to a one-year low.
Cambricon Technologies, GigaDevice Semiconductor, Zhongji Innolight, and Eoptolink Technology fell at least 5%, with one report putting the decline at 6% or more.
Investor sentiment weakened after a report said Beijing might allow local companies to buy certain Nvidia chips.
Four U.S. senators proposed restricting Zhongji Innolight and Eoptolink from U.S. government procurement.
Markets viewed the extended U.S.-China trade ceasefire as offering fewer benefits than hoped, while wider macroeconomic risks also weighed.
- Who
- Chinese investors and technology companies were affected; Beijing, Nvidia Corporation, four U.S. senators, and U.S. and Chinese officials were involved in the developments.
- What
- Chinese shares fell to a one-year low, led by declines in chipmakers and optical-equipment companies.
- When
- The decline occurred on Monday; the U.S. legislation was introduced on Friday, after mainland markets were closed for a public holiday.
- Where
- The decline occurred in mainland Chinese stock markets.
- Why
- Investors reacted to a report about possible Nvidia chip purchases, proposed U.S. procurement restrictions, weak domestic market momentum, and broader macroeconomic risks.
Limited Immediate Impact
Potential Broader Restrictions
Effect of proposed U.S. restrictions
Limited Immediate Impact
Global X Management strategist Billy Leung said the direct earnings impact on the targeted optical companies would be limited.
Potential Broader Restrictions
Citigroup analysts said the larger concern was the possibility that the proposed procurement restrictions could lead to broader future restrictions.
Trade diplomacy and technology policy
Limited Immediate Impact
The U.S.-China summit extended the trade ceasefire until January and included expected tariff relief on about $30 billion of products.
Potential Broader Restrictions
Leung said technology restrictions appeared to be continuing separately from diplomacy, and markets viewed the summit's results as falling short of expectations.
- CSI 300 move
- The onshore benchmark fell 2.2% to 2.4% on Monday, depending on the report.
- Market level
- Chinese shares touched a one-year low.
- Major decliners
- Cambricon Technologies, GigaDevice Semiconductor, Zhongji Innolight, and Eoptolink Technology fell at least 5%; one report said at least 6%.
- Reported Nvidia access
- The Information reported that Beijing may allow local companies to buy Nvidia's RTX Pro 5500 chips.
- U.S. legislation
- Four U.S. senators proposed naming Zhongji Innolight and Eoptolink as restricted vendors for government procurement.
- Trade ceasefire
- The United States and China agreed to extend their trade ceasefire until January.
- Reported tariff relief
- The leaders' summit included expected tariff relief on about $30 billion of products.
