FX.co ★ China Stocks Slip on Middle East Crisis

The Shanghai Composite Index dropped by 0.2% to approximately 3,350, while the Shenzhen Component Index slipped by 0.1% to 9,995 on Monday. This decline in mainland Chinese stocks resulted from weakened investor sentiment following U.S. airstrikes on three Iranian nuclear facilities over the weekend. This action represents a significant increase in tension, with the U.S. now siding with Israel in its ongoing conflict against Iran, sparking concerns about potential retaliatory measures from Tehran. Domestically, investors are keenly observing the forthcoming meeting of the National People’s Congress Standing Committee. This session is anticipated to include discussions around anti-competition legislation and potential responses to the newly enacted U.S. tariffs and escalating geopolitical tensions. Among the notable stocks that declined were Zhongji Innolight (-1.2%), Kweichow Moutai (-0.5%), Chutian Dragon (-0.4%), Eoptolink Technology (-2.1%), and BYD Company (-1.5%).