The Shangai Composite Index Closes 1.21% Lower

The Shanghai Composite fell 0.3% to 4,080 on Thursday, marking its third straight decline, while the Shenzhen Component dropped 0.6% to 15,644 for a second consecutive session, as lingering uncertainty over a potential US-Iran deal continued to dampen sentiment. The US confirmed defensive airstrikes on an Iranian military site, while key issues in US-Iran negotiations such as Tehran's control of the Strait of Hormuz and its nuclear program remain unresolved. Domestically, concerns over weakening Chinese fuel demand resurfaced as disruptions to oil flows through the Strait of Hormuz added pressure to energy markets. According to London-based consultancy Energy Aspects Ltd., China’s crude oil imports are on track to average 10.9 million barrels per day this year, the lowest since 2022. Technology stocks led the decline, with Hygon Information Technology (-7.1%), Cambricon Technologies (-5%), NAURA Technology (-3.5%), and Victory Giant Technology (-3.5%) posting sharp losses.

The Shangai Composite Index dropped 50 points or 1.21 percent on Wednesday to close at 4095 points. Losses were led by Hengli Petrochemical (-5.62%), China Molybdenum (-4.86%) and Zijin Mining (-4.07%).

The Shanghai Composite fell 1.25% to close at 4,094 on Wednesday, while the Shenzhen Component declined 0.88% to 15,736, wiping out gains from the earlier session as profit-taking pressure emerged amid strong economic data. Technology and semiconductor stocks led the decline, particularly Cambricon Technologies (-4.99%), Hygon Information Technology (-5.98%), Semiconductor Manufacturing International Corporation (-1.67%), Eoptolink Technology (-1.14%), and Victory Giant Technology (-2.28%), despite continued optimism surrounding artificial intelligence, which has recently driven Asian technology shares to fresh highs. On the economic front, China’s industrial profits jumped 18.2% year-on-year in the January–April period, accelerating from a 15.5% rise in the first quarter. The latest figure pointed to continued resilience in the country’s industrial sector despite lingering geopolitical uncertainties tied to tensions in the Middle East.