The Shanghai Composite Index slipped 0.6% to 3,840 on Wednesday, while the Shenzhen Component Index added 0.4% to 14,323, underscoring a mixed tone in Chinese equities as expectations for renewed US-Iran diplomatic engagement waned. US forces launched strikes against Iran for an 11th consecutive day in an effort to curb threats to shipping in the Strait of Hormuz. At the same time, President Donald Trump asserted that Tehran was eager to meet but that Washington had no interest in talks, a statement Iran quickly dismissed.
Sentiment was further dampened as Chinese technology shares resumed their decline after a sharp rebound in the previous session, despite fresh official measures to support the sector. Those moves included record inflows into the ChinaAMC STAR 50 ETF and increased equity purchases by major insurers China Life, PICC, and Ping An.
Notable laggards in the tech space included Cambricon Technologies (-2.2%), Zhongji Innolight (-2.3%), and Eoptolink Technology (-2.1%). By contrast, energy names outperformed, with PetroChina rising 1.0% and CNOOC advancing 2.4%.
