The Shanghai Composite edged down 0.2% to around 4,000 on Friday, while the Shenzhen Component gained 0.9% to 14,025. Both benchmarks, however, remained on course for a weekly decline as investors weighed the economic and inflationary risks stemming from the Iran conflict and elevated energy prices.
A pullback in oil prices provided some respite after US President Donald Trump ruled out sending ground troops to the Middle East, and Israeli Prime Minister Benjamin Netanyahu indicated that Israel would avoid further strikes on Iranian energy infrastructure. China is also relatively better positioned than many other Asian economies to absorb an oil price shock, following years of building up strategic reserves and diversifying its energy mix toward renewables.
In corporate moves, East Money Information fell 3.9% and Shenzhen Longsys Electronics dropped 4.2%, while Zhongji Innolight jumped 9.1% and Eoptolink Technology soared 10.4%.
