The Shanghai Composite fell 0.4% to 4,042 on Friday, its lowest close since mid-April, while the Shenzhen Component declined 1% to 15,504, as renewed tensions in the Middle East continued to pressure market sentiment. Although Israel and Lebanon agreed to a ceasefire aimed at ending hostilities, Tehran launched strikes on Kuwait and US forces conducted military operations near the Strait of Hormuz. The latest escalation came despite President Trump’s claim that ceasefire negotiations were in their “final” stages, even as Iran said the talks had stalled.
Among major losers were CATL (-4.3%), BYD (-1.5%), and Suzhou TFC Optical Communication (-3.4%). By contrast, chipmakers outperformed, led by SMIC (+0.7%), GigaDevice Semiconductor (+7.5%), and Hua Hong Semiconductor (+4.6%), supported by reports that AI startup DeepSeek is seeking a 50 billion yuan ($7.4 billion) funding round. For the week, the Shanghai Composite and Shenzhen Component were poised for mixed performances.
