The Shangai Composite Index Closes 0.83% Lower

The Shangai Composite Index fell 33 points or 0.83 percent on Tuesday to close at 3934 points. Leading the losses are China Molybdenum (-7.81%), Zijin Mining (-6.38%) and Sany Heavy Industry (-3.29%). Top gainers were Kangmei Pharma (4.41%), Petrochina (1.66%) and Jiangsu Hengrui (1.27%).

The Shanghai Composite fell 0.82% to close at 3,934.1 on Tuesday, while the Shenzhen Component lost 0.40% to 14,259.4, as investor sentiment weakened amid fading optimism over a near-term easing of US-Iran tensions. Market caution intensified after President Trump demanded compensation from Iran for conflict victims, while Tehran sought reparations for recent US and Israeli strikes. The standoff dimmed hopes for a swift reopening of the Strait of Hormuz, sustaining concerns about shipping disruptions and global risk sentiment. On the monetary policy front, the People’s Bank of China conducted no seven-day reverse repos on Tuesday, marking its first pause in short-term liquidity injections since June. AI-related stocks led losses, including NAURA Technology (-1.83%), Victory Giant Technology (-4.01%), Cambricon Technologies (-2.97%), and Hygon Information Technology (-1.18%), as investors rotated into defensive sectors amid volatility in the AI space.

The Shangai Composite Index gained 27 points or 0.67 percent on Monday to close at 3967 points. Gains were led by Avic Shenyang Aircraft (5.97%), Shaanxi Coal (3.87%) and Kweichow Moutai (2.99%). Biggest losers were Sanan Optoelectron (-3.82%), China Life Insurance (-2.49%) and China Pacific Insu (-1.84%).