The Shanghai Composite fell 0.5% to below 3,390 while the Shenzhen Component dropped 1% to 10,130 on Friday, extending losses from the previous session as heightened geopolitical risks weighed on global sentiment. The downturn followed Israel’s preemptive strike on Iran, which targeted Tehran’s nuclear facilities and marked a major escalation in Middle East tensions. Israeli officials pledged to continue operations until the threat is fully neutralized, raising concerns about broader instability.
On the trade front, investors digested news of a preliminary US-China agreement reached in London earlier this week. However, the agreement still requires formal approval from Presidents Donald Trump and Xi Jinping, leaving room for uncertainty. Notable decliners included Kweichow Moutai (-1.8%), BYD Company (-2.3%), East Money (-1.2%), Anhui Jianghuai (-2.3%), and Wuliangye Yibin (-2.4%).
