The Shangai Composite Index Closes 0.77% Lower

The Shangai Composite Index gained 57 points or 1.47 percent on Wednesday to close at 3949 points. Gains were led by China Eastern Airlin (6.59%), China Molybdenum (5.95%) and Sany Heavy Industry (5.15%).

The Shanghai Composite climbed 1.5% to close at 3,949 on Wednesday, while the Shenzhen Component gained 1.7% to 13,707, tracking gains across Asian peers as hopes grew for a near-term resolution to the Middle East conflict. President Donald Trump said US forces would end operations in Iran within two to three weeks, while Iranian President Masoud Pezeshkian expressed willingness to end hostilities if safeguards are put in place. Meanwhile, 43 Shanghai- and Shenzhen-listed firms pledged 25.6 billion yuan in share buybacks, the highest level in nearly a year, as the conflict pressured stock prices. On the economic front, a private survey showed that manufacturing PMI fell to 50.8 in March from 52.1 in February, indicating a moderation in factory activity. Technology stocks were among the best performers, particularly Zhongji Innolight (5.7%) and Eoptolink Technology (4%). In contrast, energy stocks declined, with PetroChina falling 1% and CNOOC dropping 3.4%.

The Shanghai Composite dropped 0.8% to close at 3,892, while the Shenzhen Component fell 1.8% to 13,478 on Tuesday, with both benchmark indices posting their worst monthly performance since January 2024, as a month-long Middle East conflict continued to cast a shadow over market sentiment. Earlier, optimism had emerged in China after official data showed the manufacturing PMI rose to a one-year high of 50.4, while the non-manufacturing PMI edged up to 50.1, suggesting renewed growth across both sectors. However, caution prevailed after President Trump signaled a potential end to US operations against Iran even without reopening the Strait of Hormuz, while Iran struck a Kuwaiti oil tanker near Dubai. Energy stocks posted strong monthly gains, led by PetroChina, which surged 12.3% to its best month since October 2025, and CNOOC, climbing 11.5% to its strongest monthly performance since January. Both benefited from a bullish oil outlook amid ongoing Middle East tensions.