The Shangai Composite Index Closes 1.47% Higher

The Shanghai Composite fell 0.3% to 3,934 on Thursday, while the Shenzhen Component dropped 1.1% to 13,557, tracking losses across Asian peers as market sentiment turned subdued amid mixed signals from US President Donald Trump on the potential easing of the Middle East conflict. Trump said the war in Iran was “very close” to completion and expected to meet its objectives in the coming weeks, yet also warned that military operations could escalate, even as diplomatic efforts continue. Meanwhile, the People’s Bank of China drained CNY 890 billion through short-term operations in March and absorbed another CNY 250 billion via longer-term tools, reversing months of liquidity support. With growth rebounding and the Iran conflict lifting oil prices, the central bank is taking a more cautious stance that could help China exit record deflation. Tech stocks were among the worst performers, particularly Zhongji Innolight (-2.4%), Eoptolink Technology (-2%), and NAURA Technology (-2%).

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%.