The Shanghai Composite hovered near the flatline on Wednesday, struggling for clear direction as investors reacted to ongoing developments in the Middle East. The US-Israeli campaign against Iran entered its 12th day with no resolution in sight, contrasting with President Donald Trump’s suggestion that the conflict could end soon. Oil prices were capped by reports that the IEA proposed the largest release of oil reserves in its history to help stabilize markets. Nonetheless, major Middle Eastern producers have sharply cut output as the Strait of Hormuz remains effectively closed. China relies heavily on oil imports from the Middle East, but its vast strategic reserves put the country in a better position than its peers to withstand this supply shock. New energy stocks led gains, including Sungrow Power (9.9%), Contemporary Amperex (4.4%), and EVE Energy (9.6%). Tech stocks also advanced, with Huagong Tech up 6.3%, Zhongji Innolight 2.3%, and Beijing Teamsun 7.4%.
