NEW YORK (TheStreet) -- ChinaInformationTechnology (CNIT) stock is down 3.08% to $2.20 in late afternoon trading on Monday as U.S. traded Chinese stocks retreat.

Chinese stocks are being pressured by anticipated changes to the country's initial public offering system, according to Marketwatch.

On Sunday, the Chinese legislature approved changes that will shift the country towards a registration system rather than the current approval-based system, Reuters reports. The changes could be enacted as early as March.

The Shanghai Composite Index closed down 2.59% to $3,533.78 on Monday.

Additionally, data showed a 1% year-over-year decline in Chinese retail sales in November.

"People are generally cautious going into next year," Rob Levine, head of Asia sales trading at CLSA, told Marketwatch.

China Information Technology is an Internet service company that offers advertising to clients.

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