The Shanghai Composite Index declined 0.4% to 4,053 on Monday, its lowest level in more than a month, while the Shenzhen Component Index added 0.3% to close at 15,622. Investors weighed mixed PMI readings against persistent concerns over soft domestic and external demand amid the ongoing conflict in the Middle East.
Official data showed the composite PMI rose to 50.5 in May from 50.1 in April, supported by a modest recovery in the non‑manufacturing sector (50.1 vs 49.4). In contrast, the manufacturing PMI edged down to 50.0 from 50.3. A separate private survey also pointed to some loss of momentum, with the manufacturing PMI easing to 51.8 from April’s five‑year high of 52.2.
Companies continued to track developments in the Middle East closely, as they contended with muted demand and higher input costs tied to regional tensions.
Among individual names, notable gainers included Foxconn Industrial Internet (+2.6%), China Shenhua Energy (+1.4%), and CATL (+2.8%). By contrast, technology stocks underperformed, led by Zhongji Innolight (-1.1%), NAURA Technology (-2.5%), and Eoptolink Technology (-1.1%).
