The Shangai Composite Index Closes 0.11% Lower

The Shanghai Composite Index edged down 0.1% to close at 4,051, while the Shenzhen Component Index rose 0.6% to 14,885 on Friday, with mainland equities trading mixed as investors awaited clearer signals on whether the weeks-long conflict in Iran could ease ahead of potential weekend talks. Still, both benchmarks ended the week on a firm note, with the Shanghai up 1.6% and the Shenzhen gaining 4%, as sentiment was cautiously underpinned by a 10-day Lebanon–Israel ceasefire and remarks from Trump pointing to a possible US–Iran meeting over the weekend, bolstering hopes of de-escalation. In China, focus shifts to policy, with the loan prime rate decision due Monday. Major global banks have pared back expectations for further easing, now expecting rates to remain steady through the year. Among individual stocks, liquor maker Kweichow Moutai led losses, falling 3.8% on weaker annual results, while Zhongji Innolight climbed 5.1% to a record high after reporting strong first-quarter profits.

The Shangai Composite Index dropped -5 points or 0.11 percent on Friday to close at 4051 points. Losses were led by Kweichow Moutai (-3.91%), Hengli Petrochemical (-3.70%) and China International (-2.54%). Offsetting the fall, top gainers were Sanan Optoelectron (9.98%), Yonghui Superstore (3.78%) and Poly Real Estate (1.51%).

The Shanghai Composite Index fell 0.3% to below 4,100, while the Shenzhen Component Index gained 0.3% to around 14,800 on Friday, with mainland stocks showing mixed performances as investors await progress on extending the US-Iran ceasefire. Still, both benchmarks remain on track for a solid second straight weekly gain amid growing optimism over a potential deal to permanently end the conflict. However, the Strait of Hormuz remains effectively closed under a dual blockade, and concerns remain that restoring a meaningful portion of disrupted oil and gas output could take up to two years. In China, the policy outlook remained cautious despite a strong Q1 GDP growth, as supply disruption and high oil prices pose risks to China’s exports. Markets now await the PBOC’s upcoming interest rate decision next week. Among individual stocks, Zhongji Innolight (+5.3%) and Foxconn Industrial (+2.8%) outperformed, while Kweichow Moutai (-3.6%) and Contemporary Amperex (-2.2%) led the declines.