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Chinese Stocks Plummet to One-Year Low as Chip, Optical Firms Slide Amid US Sanctions Threat
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CNBC TV18•28-09-2026, 10:31
Chinese Stocks Plummet to One-Year Low as Chip, Optical Firms Slide Amid US Sanctions Threat
- •Chinese shares hit a one-year low, with the onshore benchmark CSI 300 Index dropping as much as 2.4% on Monday.
- •Technology firms, including chipmakers Cambricon Technologies Corp. and GigaDevice Semiconductor Inc., and optical companies Zhongji Innolight Co. and Eoptolink Technology Inc., led the selloff, each declining at least 5%.
- •Investor sentiment worsened after reports indicated Beijing might allow local firms to purchase Nvidia's new semiconductors, potentially threatening homegrown chipmakers.
- •Proposed US sanctions on foreign optical producers, specifically legislation introduced by four US senators naming Innolight and Eoptolink as restricted vendors, further contributed to the market weakness.
- •An investment strategist noted that while the direct earnings impact might be limited, the situation highlights that tech restrictions are progressing independently of diplomatic efforts, and the recent US-China trade truce fell short of expectations.
Key Questions Answered
Chinese stocks touched a one-year low due to a selloff in technology firms following a report that authorities might allow purchases of Nvidia Corp.'s new chips and proposed US sanctions on foreign optical producers.
Investor sentiment soured because the two-month US-China trade truce reached at the summit fell short of hopes, yielding few surprises including a ceasefire extension until January and expected tariff relief.
Four US senators introduced legislation on Friday that named optical companies Zhongji Innolight Co. and Eoptolink Technology Inc. as restricted vendors for government procurement.
