The Shanghai Composite Index added 0.25% to close at 4,133, while the Shenzhen Component Index advanced 0.78% to 14,465 on Wednesday. Mainland equities rose for a second consecutive session as falling oil prices eased fears of renewed inflation and improved risk sentiment.
Crude prices came under pressure after the International Energy Agency proposed the largest release of oil reserves in its history to help stabilize global energy markets. China is also seen as relatively well positioned to withstand an oil supply shock, having long prioritized energy security by building strategic reserves and diversifying its energy mix.
Nonetheless, investors continued to contend with elevated uncertainty linked to the war involving Iran, amid conflicting signals from the Trump administration.
New energy shares led the advance, with strong gains in Sungrow Power (9.5%), Contemporary Amperex (5.5%), and EVE Energy (7.9%). Technology stocks also moved higher, including Huagong Tech, up 9.2%, Zhongji Innolight, up 1.4%, and Beijing Teamsun, up 2.7%.
