Chinese A-shares closed lower, chipmakers led sell-off amid escalating export controls by US

 

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The Shanghai Composite Index fell 1.66% to close at 2,974, dropping below 3,000 mark for the first time since May this year. The Shenzhen Component Index and the tech-heavy Chinext Price Index both declined by 2.3%.

The CSI 300 Index which tracks the 300 biggest stocks listed in Shanghai and Shenzhen, fell 2.2% to hit the lowest level since April 2020.

Semiconductor companies led the losses, with an index tracking the sector compiled by Wind Information tumbling 5.4%, making it the worst-performing sector, and about 30 companies in the sector tumbled by more than 9%. The sell-off came after the US escalated the technological cold war with China through new sanctions to squeeze the flow of high-end semiconductors and semiconductor-manufacturing equipment to Beijing. Read more …

Shares of cybersecurity companies, consumer electronics companies, drugmakers, automakers, food makers, liquor makers, tourism companies and catering companies were also lower.

Hog farmers staged a rally, with Muyuan Foods and Wens Foodstuff up more than 6%, driven by rising pork prices. Energy companies also outperformed led by CNOOC rising by 4%.