16.03.202603:03:12UTC+00China Stocks Drop on Mideast Concerns

The Shanghai Composite Index fell 0.8% to below 4,070, while the Shenzhen Component declined 1.2% to 14,100 on Monday, marking a third consecutive session of losses as escalating tensions in the Middle East and volatile oil prices weighed on market sentiment. Over the weekend, the US struck military targets on Iran’s main oil-export hub of Kharg Island, and traders assessed reports that Washington will soon announce a coalition of countries to escort commercial vessels through the Strait of Hormuz.

On the domestic front, data showed that Chinese industrial production and retail sales exceeded expectations in the first two months of the year, bolstered by holiday-related spending and robust external demand. However, new home prices registered their steepest decline in eight months, underscoring the severity of the ongoing property downturn.

Among notable losers were Huagong Tech (-4%), Zijin Mining (-5.9%), Power Construction (-8.3%), Suzhou TFC (-6.7%), and China Energy Engineering (-7.8%).