The Shangai Composite Index Closes 1.63% Higher

The Shanghai Composite slipped 0.2% to 4,086 on Tuesday, trimming gains from the previous session, while the Shenzhen Component extended its advance for a second straight day, rising 0.4% to 15,592, with both benchmarks mixed as investors adopted a cautious stance ahead of a slate of key economic indicators. New home prices across 70 cities fell 3.5% year-on-year in May 2026, marking the 35th consecutive month of decline and remaining the steepest annual contraction since May 2025, underscoring the prolonged weakness in the property sector. Investors are now awaiting a series of major economic releases, including fixed-asset investment, industrial production, retail sales, unemployment, and foreign direct investment data. Financial stocks were among the laggards, particularly Industrial and Commercial Bank of China (-0.5%), Agricultural Bank of China (-0.5%), and China Construction Bank (-1.0%).

The Shangai Composite Index gained 66 points or 1.63 percent on Monday to close at 4097 points. Gains were led by Sanan Optoelectron (9.99%), China Molybdenum (9.26%) and Datang Intl (7.79%).

The Shanghai Composite climbed 1.61% to close at 4,096 on Monday, while the Shenzhen Component soared 3.79% to 15,531, tracking gains across Asian peers as market sentiment improved on optimism over a tentative US–Iran diplomatic thaw. The agreement is said to include the reopening of the Strait of Hormuz, an end to hostilities, and a framework for renewed negotiations over Iran’s nuclear program. Officials from both countries are expected to meet in Switzerland on Friday to formally sign it. However, key details remain unresolved, and no official text has yet been released. Domestically, investors are awaiting a fresh batch of economic indicators, including industrial production, retail sales, and unemployment data. Notable movers included Zijin Mining Group (7.63%), Zhongji Innolight (8.36%), and Suzhou Dongshan Precision Manufacturing Co. (10%). In contrast, energy stocks underperformed amid lower oil prices, particularly PetroChina (-2.41%) and CNOOC (-4.62%).