Hong Kong's Hang Seng Index rose 0.5% to 24,642 points on Monday, while mainland Chinese blue-chip index dropped over 2% to a one-year low. The Shanghai Composite Index fell 1.67% to 3,823 points, and the ChiNext Index dived 4.53% to 3,139 points. The large-cap CSI300 Index ended 2.2% lower, marking its biggest loss in five weeks and touching its lowest point since August 2025.

The technology slump followed a proposal by US lawmakers to restrict the use of Chinese-made components in AI data centers. This weighed on Chinese optical transceiver makers Eoptolink Technology and Innolight Technology, which tumbled 8% and 9-12% respectively. The decline also reflected fading optimism over the US-China summit, despite an agreement to reduce tariffs on US$30 billion of goods and launch an AI dialogue. OCBC Bank noted that the US and China remain divided across technology, security, trade and international governance.