Chinese shares touched a one-year low on Monday, led by a selloff in technology firms. The onshore CSI 300 Index dropped as much as 2.4%, with chipmakers Cambricon Technologies Corp. and Giga Device Semiconductor Inc., and optical companies Zhongji Innolight Co. and Eoptolink Technology Inc., declining at least 5% each. The chip-heavy Star50 gauge fell the most in a month.

Investor mood soured after reports that Beijing may allow purchases of Nvidia Corp.’s new chips and proposed US sanctions on foreign optical producers. Four US senators introduced legislation naming Innolight and Eoptolink as restricted vendors for government procurement. "The direct earnings impact is limited, but it shows that tech restrictions are running on a separate track to diplomacy," said Billy Leung of Global X Management. The closely watched gathering between US President Donald Trump and Chinese counterpart Xi Jinping yielded few market surprises, including expected tariff relief on about $30 billion of products and a trade ceasefire extension until January.

Chinese stocks have been languishing amid a lack of momentum, with AI hardware stocks failing to recover from a July selloff. Most Asia stocks also fell on Monday as global macro factors such as high oil prices spurred risk-off sentiment.