GigaDevice Semiconductor Inc. was among the worst‑performers on Monday, bleeding 5.2% as the CSI 300 index slid 2.4% to a one‑year trough. The fall comes less than a week after the onshore market closed for a public holiday, amplifying the shock.
Cambricon Technologies Corp. and GigaDevice both lost just over five percent, while optical players Zhongji Innolight Co. and Eoptolink Technology Inc. each slipped 5.1% and 5.0% respectively. The tech cluster’s collective drop surpassed the 3.8% fall in the broader Nifty 500, underscoring a sector‑specific rout.
The sell‑off was stoked by a story in The Information that Beijing may allow domestic firms to purchase Nvidia’s latest semiconductor line, a move that could raise the competitive bar for homegrown chipmakers. U.S. senators, meanwhile, introduced legislation naming Innolight and Eoptolink as restricted vendors for federal procurement.
Billy Leung, an investment strategist at Global X Management, said, "The direct earnings impact is limited, but it shows that tech restrictions are running on a separate track to diplomacy." He added that the two‑month trade truce reached at last week’s summit "fell short of hopes."
Looking ahead, analysts expect the CSI 300 to remain under pressure until the next earnings cycle, as policy uncertainty lingers. Investors will be watching the upcoming earnings of key tech names and any new directives from Beijing on chip imports or U.S. sanctions.