The Shanghai Composite Index rose 0.8% on Friday to move back above the 4,000 mark, while the Shenzhen Component gained more than 1.3% to reach 15,000. Both indices rebounded from the previous session, mirroring advances across Asian markets as renewed hopes for a Middle East peace agreement improved global risk sentiment.
Despite the day’s gains, both benchmarks were still on track for weekly losses after earlier volatility fueled by heightened US–Iran tensions. Those concerns eased later in the week as risk appetite improved, helped by President Trump’s comments that a deal could be reached as soon as this weekend, potentially paving the way to reopen the Strait of Hormuz.
On the domestic front, investors are turning their focus to China’s May credit data, due later today, for fresh indications of economic momentum. The figures will be closely watched after an unexpected contraction in new yuan loans in April.
Sector gains were led by semiconductors, minor metals, and precious metals. Notable movers included SMIC (up 4.1%), Zhongji Innolight (3.4%), Zijin Mining (3.2%), and China Tungsten (5.4%).
