China’s blue-chip CSI300 Index and the Shanghai Composite Index dipped 0.11% at the lunch break.

Hong Kong’s Hang Seng Index fell 0.55% while the Hang Seng China Enterprises Index lost 0.45%.

Tech stocks led the decline in Hong Kong, with the Hang Seng Tech Index dropping 1.4%.

“On Friday, Trump signed a memorandum that directed the committee on foreign investment in the US to restrict Chinese investments in strategic areas,” a White House official said.

The America First Investment Policy aims to restrict two-way US-China investment in sensitive areas such as technology.

“Investors should not be complacent about escalating US-China competition,” Jefferies analysts said following Trump’s move.

“The emergence of DeepSeek could prompt the US to be vigilant about setting back China’s tech ambitions,” they added.

In mainland A-shares, 5G communications and healthcare sectors underperformed but were partly offset by a rally in property and liquor stocks.

George Efstathopoulos, portfolio manager at Fidelity International, said they have been witnessing some green shoots in the property sector in the past few months, indicating that “the worst of the property deleveraging cycle is behind us”.

The smaller Shenzhen index added 0.07% and Shanghai’s tech-focused STAR50 index gained0.46%​.

The start-up board ChiNext Composite index shed 0.79%.

“Certainly there are some headline risks from Trump’s focus on national security and resource nationalism,” said Charu Chanana, chief investment strategist at Saxo Markets.

“But the bigger driver for Chinese stocks will continue to be the stimulus measures expected from the annual National People’s Congress meeting in March,” Chanana added.