The Shanghai Composite Index slipped 0.4% to 3,798 on Wednesday, while the Shenzhen Component Index declined 1.5% to 13,313, as investors weighed rising tensions in the Middle East against a rebound in previously battered technology stocks. Geopolitical risks intensified after Iran fired ballistic missiles at US positions following a brief period of relative calm, though US Central Command reported that all projectiles were intercepted.
Banking shares were among the heaviest drags on the market, with losses led by Industrial and Commercial Bank of China (-1.0%), Agricultural Bank of China (-1.0%), and Bank of China (-1.3%). In contrast, technology shares staged a rebound from recent declines, with gains for Zhongji Innolight (1.6%), Eoptolink Technology (1.3%), NAURA Technology (1.1%), and Cambricon Technologies (2.6%), even as investors remained cautious about stretched valuations and elevated AI-related spending.
Market participants are now focused on the upcoming Politburo meeting later this week, where they hope to glean fresh signals on China’s economic policy agenda.
