Mainland Chinese stocks fell to their lowest level in 13 months on Monday as the sell-off in technology shares intensified amid concerns that elevated global capital costs and surging oil prices would curb risk appetite.
Markets opened the week on a sombre note, with the CSI 300 Index dropping 2.2 per cent to close at a level not seen since August 21 last year. The chip-heavy Star Market 50 index tumbled 4.1 per cent, capping its steepest single-day decline in five weeks and closing in on the low reached during July’s technology rout.
Hong Kong’s Hang Seng Index bucked the trend, rising 0.5 per cent.
Chinese technology stocks took a beating as crude oil traded above US$100 a barrel after the US rejected a proposal by Iran to restore traffic through the Strait of Hormuz. The latest back-and-forth in negotiations kept inflation concerns alive and Treasury yields elevated.
