The Shanghai Composite fell 0.8% to 3,883, while the Shenzhen Component dropped 1.3% to 13,573 on Monday, extending losses from the previous week as market sentiment continued to deteriorate amid escalating Middle East tensions. The sell-off tracked broader weakness across Asian markets as the conflict entered its fifth week, with US President Trump warning that the US could “take the oil in Iran,” including seizing Kharg Island. In addition, hostilities widened as Iran-aligned Houthi forces launched missiles toward Israel, heightening risks to energy supply routes. Adding to investor unease, a few Chinese-linked vessels reversed course near the Strait of Hormuz, an unusual development given the traditionally stable ties between Beijing and Tehran. Losses were led by Contemporary Amperex (-1.2%), Luxshare Precision Industry (-2.5%), and Ping An Insurance (-1.1%). In contrast, energy stocks outperformed on higher oil prices, particularly PetroChina (1.9%) and CNOOC (1.4%).
