The Shangai Composite Index Closes 0.69% Lower

The Shanghai Composite dropped 0.7% to close at 3,966, while the Shenzhen Component fell 0.3% to 13,996 on Thursday, reversing gains from the previous session as markets reassessed the durability of a fragile US–Iran ceasefire. Tensions resurfaced after Israel launched its heaviest strikes yet on Lebanon, while Iran warned it may be “unreasonable” to proceed with talks on a permanent deal, raising doubts over the truce. Consumer staples and financial shares led declines, down 1.4% each. Other notable losses were seen from Foxconn Industrial (-2.8%), Zijin Mining (-2.1%), and BYD (-2.2%). Conversely, energy stocks edged higher as oil prices rebounded. Investors are now focused on China’s first-quarter inflation data due Friday, which is expected to offer clues on domestic demand. China is expected to emerge from deflation earlier than markets anticipate, with PPI, CPI, and the GDP deflator all projected to turn positive year-on-year in the first quarter.

The Shangai Composite Index dropped -28 points or 0.69 percent on Thursday to close at 3967 points. Losses were led by Sanan Optoelectron (-4.19%), China Pacific Insu (-4.01%) and China International (-3.00%). Offsetting the fall, top gainers were Aluminum Corporation of China (4.25%), Huayu Automotive (2.04%) and Inner Mongolia BaoTou Steel (1.41%).

The Shanghai Composite dropped 0.8% to below 4,000, while the Shenzhen Component fell 0.3% to 14,000, tracking losses across Asian peers as sentiment turned cautious amid a fragile US–Iran ceasefire. The agreement, announced by US President Trump and tied to a 10-point proposal involving a potential reopening of the Strait of Hormuz, has already come under strain, putting regional risk sentiment on edge. Iran’s parliamentary speaker accused the US of violating the deal, citing disputes over uranium enrichment, continued Israeli strikes in Lebanon, and alleged airspace breaches. Locally, investors are focused on China’s upcoming inflation data due Friday, expected to show a modest rise in annual consumer prices and a return to year-on-year growth in producer prices for the first time since September 2022. Among individual stocks, notable losses were seen from Foxconn Industrial (-2.1%), Ping An Insurance (-1.7%), China Life Insurance (-1.9%), BYD (-1.8%), and Zijin Mining (-1.7%).