The Shanghai Composite edged down 0.2% to 3,980 on Monday, while the Shenzhen Component rose 0.5% to 14,386, as sentiment turned cautious amid renewed geopolitical worries following the collapse of US–Iran peace talks. Negotiations between the two countries ended without agreement, while President Trump announced a full naval blockade of the Strait of Hormuz, heightening concerns over global energy supply disruptions. Despite the uncertainty, Chinese stocks have been seen as a relative safe haven since the outbreak of war in Iran, supported by energy resilience, policy backing, and limited exposure to the Middle East crisis. Moreover, signs of economic stabilisation are emerging, with China exiting factory-gate deflation after more than three years. Notable laggards included Kweichow Moutai Co (-1.1%), Ping An Insurance (-1.3%), and Agricultural Bank of China (-0.5%). In contrast, Contemporary Amperex Technology (3.9%), BYD (2.5%), and Hygon Information Technology (9.4%) led the gains.
