| China’s stock markets ended mixed on Monday. The Shanghai Composite edged up 0.2% to 3,923, while the Shenzhen Component slipped 0.3% to 13,726, as investors stayed cautious due to rising tensions in the Middle East. The conflict has now entered its fifth week, with US President Donald Trump warning that the US could “take the oil in Iran,” even mentioning the possibility of seizing Kharg Island. Meanwhile, risks increased further after Iran-backed Houthi forces fired missiles toward Israel, raising concerns about disruptions to key energy routes.
Investor worries also grew after some China-linked ships unexpectedly changed course near the Strait of Hormuz, despite generally stable relations between China and Iran. On the market front, losses were led by companies like Midea Group, Luxshare Precision Industry, and Sungrow Power Supply. On the other hand, energy stocks performed well as oil prices rose, with PetroChina and China Petroleum and Chemical Corporation posting gains. |