The Shangai Composite Index Closes 0.96% Lower

The Shanghai Composite rose 0.5% to around 4,100, while the Shenzhen Component gained 1.5% to 14,130 on Thursday, breaking a two-day decline even after Beijing unveiled a lower economic growth target amid persistent deflation and higher US tariffs. China set a GDP target of 4.5%–5% for 2026, marking the lowest since record began in the early 1990s. The nation’s 15th Five-Year Plan also pledged increased investments in innovation, high-tech sectors, scientific research, and boosting household consumption as a share of GDP. On the external front, mainland stocks tracked a rebound in global markets as inflationary concerns eased, though hostilities between the US and Iran persisted. Technology and power companies led the gains, with strong performances from Biwin Storage Technology (13.2%), Eoptolink Technology (6.9%), Zhongji Innolight (5.4%), Shanghai Electric (10%), and China XD Electric (7%).

The Shangai Composite Index fell -39 points or 0.96 percent on Wednesday to close at 4083 points. Leading the losses are Jiangsu Lianyungang (-10.06%), Hengli Petrochemical (-8.69%) and Shanghai Petrochemical (-6.51%). Top gainers were NARI Technology (3.25%), Aluminum Corporation of China (3.08%) and Avic Aviation Engine (2.54%).

The Shanghai Composite fell 0.98% to close at 4,082, while the Shenzhen Component dropped 0.75% to 13,918 on Wednesday, extending losses from the prior session as investors reacted to mixed PMI data. Official figures showed Chinese manufacturing and services sectors contracted for a second consecutive month in February as the long Lunar New Year holiday disrupted economic activity. In contrast, a private survey indicated that both manufacturing and services activity accelerated last month. Attention now turns to the annual “Two Sessions” gathering, where authorities are expected to set economic targets and outline policy priorities. Globally, equities remain under pressure amid the escalating Middle East conflict, which has pushed energy prices higher and stoked inflation fears. Tech and resource-related stocks led the decline, with sharp losses from Zhongji Innolight (-4.4%), Eoptolink Technology (-3.4%), Zijin Mining (-2.3%), CNOOC Ltd (-1.3%) and China Petroleum (-5.4%).