Chinese equities have reached their lowest point in over a year, primarily driven by a selloff in the technology and semiconductor sectors. The CSI 300 index fell by 2% on September 27, 2026, as investors reacted to shifting US export policies and uncertainty regarding domestic chip production.
Individual semiconductor stocks experienced significant declines, with Cambricon shares falling 5.7% and SMIC dropping 3.6%. Market pressure intensified following reports that the US might ease restrictions on Nvidia H200 chips, which could reduce the competitive appeal of domestic alternatives.
The broader tech sector also faced challenges in August 2026, when optical module manufacturers Zhongji Innolight and Eoptolink saw their shares decline by approximately 10% due to US import bans. This contributed to a 9% drop in the CSI 300 telecom services index during the same period.
July 2026 recorded the worst monthly performance for the CSI 300 in a decade, with an 8.6% decrease. This decline was attributed to global tech selloffs and profit-taking in domestic memory chipmakers such as CXMT, while the CSI AI Index also surrendered earlier gains.
