Mainland stocks steady; techs sold on ZTE woes

Chinese mainland stocks dipped lower on Monday, as tech firms faced pressure amid the ZTE ban, while investors found some solace on the geopolitical front.

The blue-chip CSI300 index grew 0.15 percent at 3,766.33 points, while the Shanghai Composite Index dipped 0.11 percent to 3,068.01 points.

All eyes were on China’s ZTE, which is seeking a resolution to a US ban on selling it parts and software that it has said threatens its survival.

Dozens of fund managers have already cut the valuations of ZTE shares by more than 20 percent, with some even flagging a 30 percent cut. The ZTE stock is halted on the mainland and Hong Kong markets.

Tech stocks were under pressure amid the ZTE woes, with the tech-heavy start-up board ChiNext index closing down 1.67 percent in its third session of drops.

Leading tech firm BOE Technology plumbed a seven-month low despite clarifying sanctions reports.

The largest percentage gainers in the main Shanghai Composite Index were Jilin Expressway Co up 10.12 percent, followed by China United Network Communications gaining 10.06 percent and EmbedWay Technologies Shanghai Corp up by 10.01 percent.

The largest percentage losers in the Shanghai index were Western Region Gold Co down 10.01 percent, followed by Shanghai Wondertek Software Co losing 10.01 percent and Jiangyin Jianghua Microelectronics Materials Co down by 10 percent.