Chinese Stocks Hit One-Year Low as Chip, Optical Firms Slide

September 28, 2026 at 09:22 AM1 min

This digest was compiled by AI from multiple sources — links to the originals are below.

Chinese stocks fell to a one-year low on Monday, with the CSI 300 Index dropping as much as 2.4%. The decline was led by chipmakers and optical firms after reports that Beijing may allow purchases of Nvidia's new chips and proposed US sanctions on foreign optical producers.

Key Facts

The CSI 300 Index dropped as much as 2.4% on Monday, touching a one-year low.
Chipmakers Cambricon Technologies and GigaDevice Semiconductor fell at least 5% each.
Optical companies Zhongji Innolight and Eoptolink Technology were also among top decliners, down at least 5%.
Four US senators introduced legislation naming Innolight and Eoptolink as restricted vendors for government procurement.
The US-China trade truce was extended until January, with tariff relief on about $30 billion of products.

Market Decline

The onshore benchmark CSI 300 Index dropped as much as 2.4% on Monday, reaching a one-year low. Mainland Chinese markets were closed on Friday for a public holiday. The selloff was led by technology firms, with chipmakers and optical companies among the top decliners.

Policy Pressures

The Information reported that Beijing signaled it may let local firms buy Nvidia's new semiconductors, threatening homegrown chipmakers amid intense domestic competition. Four US senators introduced legislation on Friday naming Innolight and Eoptolink as restricted vendors for government procurement. Billy Leung, an investment strategist at Global X Management, said the direct earnings impact is limited but shows tech restrictions are running on a separate track to diplomacy. Leung added that the two-month US-China trade truce reached at last week's summit fell short of hopes.

Summit Aftermath

The meeting between US President Donald Trump and Chinese counterpart Xi Jinping yielded few surprises for markets. Expected tariff relief on about $30 billion of products and a decision to extend the trade ceasefire until January were announced.