The Shanghai Composite Index slipped 0.4% to 4,077 on Friday, while the Shenzhen Component Index declined 0.8% to 14,940, with both benchmarks extending losses as escalating tensions in the Middle East continued to dampen risk appetite. Iran indicated it would keep the Strait of Hormuz closed, and US President Trump said he had previously ordered the navy to “shoot and kill” vessels laying mines in the waterway.
The resulting jump in oil prices is amplifying global inflationary pressures, with Chinese exporters raising prices as higher fuel and raw material costs filter through supply chains. Several consumer goods categories posted sharp year-on-year price increases in March, reversing a prolonged period of price stability.
On the corporate front, Eoptolink Technology tumbled 9.2% despite reporting that both revenue and net profit more than doubled year-on-year in the first quarter of 2026.
For the week, the Shanghai Composite remains on track for a third consecutive weekly gain, while the Shenzhen Component is poised to finish lower.
