13.07.202602:08:01UTC+00China Stocks Fall as Week Begins

The Shanghai Composite Index declined 0.7% to 3,968 on Monday, while the Shenzhen Component Index fell 1.6% to 14,808, extending the previous week’s losses as investors remained cautious amid renewed US–Iran tensions. Over the weekend, fresh US missile strikes on Iran heightened friction between Washington and Tehran, with the two sides issuing conflicting statements on the status of shipping through the Strait of Hormuz. The latest escalation further dimmed prospects for talks on Iran’s nuclear program and for a broader diplomatic resolution to the conflict.

At the same time, China reportedly called on major refiners to sustain robust fuel production to strengthen energy security in anticipation of possible disruptions to oil shipments from the Persian Gulf, despite already ample fuel inventories and subdued domestic demand.

On the corporate front, losses were led by BYD (-3.2%), Luxshare Precision Industry (-2.5%), and Hangzhou Hikvision Digital (-1.7%). In contrast, energy stocks outperformed the broader market, with PetroChina rising 0.9% and CNOOC advancing 2.2%.