FX.co ★ China Stocks Finish the Week Strong

The Shanghai Composite Index slipped 0.1% to close at 4,051 on Friday, while the Shenzhen Component Index advanced 0.6% to 14,885, leaving mainland equities mixed as investors awaited clearer signs that the weeks-long conflict in Iran might ease ahead of possible weekend talks. Despite the subdued finish, both indices posted solid weekly gains, with the Shanghai up 1.6% and the Shenzhen rising 4%, supported by cautious optimism following a 10-day Lebanon–Israel ceasefire and comments from Trump suggesting a potential US–Iran meeting over the weekend, which lifted hopes for de-escalation. In China, attention is turning to policy, with the loan prime rate decision due on Monday. Major global banks have scaled back expectations for further monetary easing and now generally forecast rates to remain unchanged for the rest of the year. At the stock level, liquor producer Kweichow Moutai led decliners, losing 3.8% on weaker annual results, while Zhongji Innolight gained 5.1% to a record high after posting strong first-quarter earnings.