24.11.202503:13:27UTC+00China Stocks Slip as Chip Firms Weigh

On Monday, the Shanghai Composite Index decreased by 0.2%, dipping below 3,830, while the Shenzhen Component Index fell by 0.4% to 12,490. This downturn led to mainland stocks reaching multi-month lows, largely due to mounting pressure on Chinese chipmakers. This pressure stems from reports that the United States is contemplating allowing Nvidia to sell its H200 AI chips to China. Nvidia's CEO, Jensen Huang, has been actively engaging with the Trump administration, seeking relief from export controls that have benefited Chinese competitors. Among the significant decliners were FoxConn Industrial, dropping 8%, Suzhou TFC Optical, down 2%, and Cambricon Technologies, also falling by 2%. Additionally, the new energy sector saw continued declines, with Do Fluoride New Materials decreasing by 3.3%, Guangzhou Tinci Materials losing 4.8%, and Ganfeng Lithium plummeting by 8.9%. Despite a general rebound in other Asian markets, Chinese stocks underperformed, as dovish remarks from a senior Federal Reserve official renewed expectations of a potential rate cut in December.