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MarketsStocks

Chinese Stocks Remain on Firm Footing

The Shanghai Composite Index rose 0.4% to 4,043 on Wednesday, hitting a fresh one-month high, while the Shenzhen Component Index edged up 0.1% to 14,658, holding near its strongest level since January 2022, as optimism grew over renewed US-Iran talks and signs of a rebound in China’s early-2026 growth. Washington and Tehran are preparing for a second round of talks in the coming days, with President Donald Trump stating that negotiations could resume “within the next two days” in Pakistan. Meanwhile, China’s economy is projected to expand by 4.8% year-on-year in Q1, marking a modest recovery from 4.5% growth in Q4 2025, which was the slowest pace since the post-pandemic reopening in 2022. The prolonged Middle East conflict has so far had limited impact on China, aided by years of efforts to bolster energy security and cushion external shocks. Notable movers included Agricultural Bank of China (1.2%), Foxconn (1%), Zhongji Innolight (4%), and Luxshare Precision Industry (2.7%).

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