The Shangai Composite Index Closes 0.73% Lower

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.

The Shangai Composite Index decreased -29 points or 0.73 percent on Tuesday to close at 3895 points. The decline was led by Aluminum Corporation of China (-4.68%), Datang Intl (-4.12%) and Sanan Optoelectron (-4.11%). On the upside, the strongest performers were Huayu Automotive (7.89%), Crrc (4.10%) and Bank Of China (3.70%).

The Shanghai Composite rose 0.5% to 3,941, while the Shenzhen Component gained 0.4% to 13,769 on Tuesday, lifted by upbeat PMI data signaling economic resilience despite ongoing Middle East uncertainties. Official data showed the composite PMI returned to expansion at a three-month high of 50.5 in March 2026, as the manufacturing PMI climbed to a one-year high of 50.4, while the non-manufacturing PMI rose to 50.1. The recent figures suggest renewed growth across both sectors, supported by government stimulus, strong holiday spending, and solid exports. While the economy remains exposed to external risks, particularly escalating Middle East tensions, Chinese stocks have outperformed many global peers since the Iran conflict began. Notable gainers included PetroChina (3.1%), Industrial and Commercial Bank of China (2.3%), BYD (1.2%), and Midea Group (6.6%). Over the month, both benchmark indices remain on track for a monthly decline.