FX.co ★ China Stocks Mixed as Caution Prevails

The Shanghai Composite slipped 0.2% to 3,980 on Monday, while the Shenzhen Component gained 0.5% to close at 14,386, as risk appetite softened amid renewed geopolitical tensions following the breakdown of US–Iran peace talks. The negotiations ended without a deal, and President Trump’s announcement of a full naval blockade of the Strait of Hormuz further stoked fears of disruptions to global energy supplies.

Even so, Chinese equities have continued to be viewed as a relative safe haven since the outbreak of war in Iran, underpinned by the country’s energy resilience, supportive policy measures, and limited direct exposure to the Middle East crisis. Adding to the constructive backdrop, early signs of economic stabilisation are emerging, with China exiting factory-gate deflation after more than three years.

On the downside, notable decliners included Kweichow Moutai Co (-1.1%), Ping An Insurance (-1.3%), and Agricultural Bank of China (-0.5%). In contrast, Contemporary Amperex Technology (+3.9%), BYD (+2.5%), and Hygon Information Technology (+9.4%) were among the session’s top gainers.