Chinese equities experienced downward pressure on Monday, as the Shanghai Composite declined 1.67% to 3,823.6, marking its lowest level in approximately two months. The Shenzhen Component retreated 3.44% to 12,858.8, registering a greater than nine-month trough.

The downturn materialized as investors resumed trading following the holiday period and responded to the absence of significant breakthroughs at the Trump-Xi summit. Although the US and China concurred to reduce tariffs on approximately $30 billion of imports from each side and prolong their trade suspension until January, numerous critical matters remained unaddressed.

Technology equities faced significant selling pressure following disclosures concerning prospective Chinese acquisitions of Nvidia’s latest AI chips and suggested US sanctions targeting overseas optical component manufacturers. Cambricon Technologies retreated 6.55%, GigaDevice Semiconductor decreased 6.58%, Zhongji Innolight shed 4.35%, and Eoptolink Technology decreased 4.53%.