China Stocks Fall on Middle East Jitters

The Shanghai Composite fell 0.4% to 3,798 on Wednesday, while the Shenzhen Component dropped 1.5% to 13,313, as investors weighed escalating Middle East tensions against a rebound in battered technology stocks. Tensions in the region intensified after Iran launched ballistic missiles toward US positions following a brief period of relative calm, though US Central Command said all projectiles were intercepted. Banking shares were among the biggest drags, 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 stocks rebounded from recent losses, with Zhongji Innolight (1.6%), Eoptolink Technology (1.3%), NAURA Technology (1.1%), and Cambricon Technologies (2.6%) advancing despite persistent concerns over elevated valuations and AI-related spending. Attention is now turning to the Politburo meeting later this week, where investors hope to gain fresh insight into China’s economic policy agenda.





