China stocks fall to 1-year low as Trump-Xi summit optimism fades
FXI•China's CSI300 fell 2.2% to its lowest level since August 2025, while the Shanghai Composite declined 1.7%, as summit optimism faded and concerns over economic imbalances and geopolitical risks weighed on shares.
1. Chinese shares decline
The CSI300 ended Monday down 2.2%, its biggest loss in five weeks, and touched its lowest point since August 2025. The Shanghai Composite fell 1.7%, while Hong Kong stocks rose 0.5%.
2. Technology shares slump
Technology shares fell after US lawmakers introduced legislation to bar the federal government from equipping sensitive systems with Chinese-made components used to transmit data in AI data centres. Eoptolink, named in the legislation, dropped 8% in Shenzhen; Innolight fell 9% in Shenzhen and 12% in Hong Kong. China's CSI 300 Telecommunication Services Index lost more than 6%.
3. Trade and economic concerns
The US and China said they agreed to reduce tariffs on $30 billion of goods in each direction and launch an AI dialogue after a meeting between Xi Jinping and Donald Trump in Washington. China's industrial profit growth slowed in August, and investors faced a week-long holiday from October 1.
