The Shanghai Composite Index declined 0.8% to 3,883 and the Shenzhen Component Index fell 1.3% to 13,573 on Monday, extending the previous week’s losses as sentiment weakened further amid escalating tensions in the Middle East. The downturn mirrored broader softness across Asian markets as the conflict entered its fifth week, with US President Trump warning that the US could “take the oil in Iran,” including by seizing Kharg Island.
Hostilities also broadened after Iran-aligned Houthi forces launched missiles toward Israel, amplifying concerns over disruptions to key energy supply routes. Investor unease deepened when several Chinese-linked vessels reversed course near the Strait of Hormuz, an unusual move given the historically stable relationship between Beijing and Tehran.
On the corporate front, declines were led by Contemporary Amperex (-1.2%), Luxshare Precision Industry (-2.5%), and Ping An Insurance (-1.1%). By contrast, energy shares outperformed on the back of higher oil prices, with PetroChina up 1.9% and CNOOC gaining 1.4%.
