Shares of Semiconductor Manufacturing International Corp (SMIC) 0981.HK, China's largest chipmaker, plummeted by 5.55% on Thursday, November 1st, as investors grew increasingly wary of the potential implications of the upcoming U.S. presidential election on the company and the broader Chinese tech industry.

The sell-off came amid mounting concerns that a potential victory by former President Donald Trump could lead to further escalation of tensions between the U.S. and China, particularly in the technology sector. During his previous term, Trump imposed sanctions and export restrictions on several Chinese tech firms, including SMIC, citing national security concerns.

While some analysts suggest that Trump's unpredictable approach could undermine cooperation with U.S. allies and potentially work in China's favor, the uncertainty surrounding his policies has nonetheless fueled volatility in the markets. Investors are reportedly cautious about the potential impact on SMIC's operations and supply chain if further sanctions or export controls are implemented.