02.04.202602:53:07UTC+00China Stocks Track Asian Peers Lower

The Shanghai Composite slipped 0.3% to 3,934 on Thursday, while the Shenzhen Component lost 1.1% to close at 13,557, mirroring declines across other Asian markets as sentiment weakened amid mixed signals from US President Donald Trump on the possible easing of the Middle East conflict. Trump said the war in Iran was “very close” to being concluded and that he expected its objectives to be met in the coming weeks, but he also cautioned that military operations could still escalate even as diplomatic efforts continue.

On the domestic front, the People’s Bank of China withdrew CNY 890 billion via short-term operations in March and absorbed an additional CNY 250 billion through longer-term facilities, reversing several months of net liquidity injections. With economic growth rebounding and the Iran conflict pushing up oil prices, the central bank has adopted a more cautious policy stance that could help the country emerge from record deflation.

Technology shares were among the weakest performers, with notable declines in Zhongji Innolight (-2.4%), Eoptolink Technology (-2%), and NAURA Technology (-2%).