Chinese Stocks Hit One-Year Low Amid Nvidia Chip Concerns
Chinese technology shares plummeted to a one-year low following reports that Beijing may allow local firms to purchase Nvidia semiconductors.
Chinese stocks fell to a one-year low on September 28, 2026, led by a sharp selloff in technology shares. The decline followed a report from The Information indicating that Beijing may permit local firms to purchase new semiconductors from Nvidia Corp., a decision that threatens the viability of domestic chipmakers. The chip-heavy Star50 gauge experienced its steepest decline in a month, while the onshore CSI 300 Index dropped as much as 2.4%.
Adding to the market volatility, four U.S. senators introduced legislation to designate Chinese optical firms Zhongji Innolight Co. and Eoptolink Technology Inc. as restricted vendors for government procurement. These developments occur despite a recent trade ceasefire extension lasting until January and tariff relief on $30 billion of products.
These trade concessions were agreed upon during a summit between U.S. President Donald Trump and Chinese President Xi Jinping. However, the combination of potential domestic competition from Nvidia and new U.S. procurement restrictions has triggered significant instability in the Chinese tech sector.
