The Shanghai Composite Index fell 0.4% to 4,077 on Friday, while the Shenzhen Component Index dropped 0.8% to 14,940, with both benchmarks extending losses as Middle East tensions continued to weigh on sentiment. Iran signaled it would keep the Strait of Hormuz closed, while US President Trump said he had previously ordered the navy to “shoot and kill” vessels laying mines in the strait. The resulting surge in oil prices is fueling global inflation pressures, with Chinese exporters raising prices as higher fuel and raw material costs ripple through supply chains. Several consumer goods categories saw sharp annual price increases in March, reversing a prolonged period of price stability. On the corporate side, Eoptolink Technology plunged 9.2% despite reporting that both revenue and net profit more than doubled year-on-year in Q1 of 2026. For the week, the Shanghai index is heading for a third straight gain, while Shenzhen is set to decline.
