Shanghai shares dip after defense and chip firms weaken

Investors worry over spat involving ZTE Corp in the US after Washington bans companies from supplying vital components to the Chinese firm for seven years.

Shanghai stocks dipped today after defense and  computer companies declined.

The Shanghai Composite Index shed 0.11 percent to close at 3,068.01 points.

Defense companies including Jiangxi Hongdu Aviation Industry Co Ltd, Beijing Aerospace Changfeng Co Ltd and AECC Aero Science and Tech Co Ltd all dropped by over 6 percent.

Avic Shenyang Aircraft Co Ltd fell 8.61 percent and Avic Helicopter Co Ltd shed 8.49 percent.

Investors were also worried over the spat involving ZTE Corp in the US after Washington last Monday imposed a ban on companies supplying vital components to one of China's biggest technology companies for seven years.

As a result, shares of chip companies suffered one of their biggest decliners today. 

Will Semiconductor Co Ltd Shanghai fell 7.82 percent to end at 36.89 yuan and Datang Telecom Technology Co Ltd lost 7.54 percent.

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