The Shangai Composite Index Closes 0.12% Lower

The Shangai Composite Index decreased 5 points or 0.12 percent on Tuesday to close at 4148 points. The decline was led by Datang Intl (-3.24%), Yonyou Soft (-3.20%) and Shanghai Electric (-3.02%). On the upside, the strongest performers were Aluminum Corporation of China (10.01%), Zijin Mining (4.91%) and China Molybdenum (4.34%).

The Shanghai Composite slipped 0.17% to close at 4,145 on Tuesday, while the Shenzhen Component edged up 0.12% to 15,876, leaving benchmarks mixed as market sentiment turned cautious after US military strikes in the Middle East dimmed hopes for a near-term peace agreement. The US and Israel launched strikes in southern Iran, describing the operations as defensive measures, even as Washington and Tehran were reportedly moving closer to a potential agreement aimed at easing tensions and reopening the Strait of Hormuz. Meanwhile, Chinese investors are increasingly seeking alternative channels to trade overseas equities after Beijing intensified its crackdown on illicit cross-border stock trading in an effort to curb capital outflows. Among individual stocks, major decliners included SMIC (-4.27%), Kweichow Moutai (-0.97%), Luxshare Precision Industry (-2.95%), and NAURA Technology Group (-3.07%).

The Shangai Composite Index rose 41 points or 1.00 percent on Monday to close at 4154 points. Leading the gains are Datang Intl (7.55%), China Eastern Airlin (6.28%) and China Molybdenum (4.26%). Top losers were Petrochina (-3.16%), Avic Shenyang Aircraft (-2.68%) and Fuyao Glass Indu (-2.61%).