China Stocks Slip as Chip Firms Weigh
Chinese stocks fell, with the Shanghai Composite down 0.2% and Shenzhen Component down 0.4%, as chipmakers faced pressure from potential US export controls. Major decliners included FoxConn Industrial (-8%) and Ganfeng Lithium (-8.9%). Despite a broad Asian market rebound, Chinese stocks lagged due to concerns over US policy and dovish Federal Reserve comments.
The Shanghai Composite fell 0.2% to below 3,830, while the Shenzhen Component lost 0.4% to 12,490 on Monday, with mainland stocks hitting multi month lows as Chinese chipmakers came under pressure following reports that the US is considering allowing Nvidia to sell H200 AI chips to China.
Nvidia CEO Jensen Huang has been lobbying the Trump administration for relief from export controls that have opened Chinese markets to competitors.
Major decliners included FoxConn Industrial (-8%), Suzhou TFC Optical (-2%) and Cambricon Technologies (-2%).
New energy shares also extended losses, with Do Fluoride New Materials down 3.3%, Guangzhou Tinci Materials off 4.8% and Ganfeng Lithium falling 8.9%.
Chinese stocks underperformed other Asian markets, despite a broad rebound, as dovish comments from a senior Federal Reserve official revived bets on a December rate cut.
