Chinese shares closed mixed on Monday amid escalating US-Iran hostilities.
The Shanghai Composite Index, the main gauge of Chinese stocks, closed 0.9% higher to 3,796.28. The Shenzhen Component Index fell 0.7% to 13,610.23.
The U.S.-Iran conflict has continued to escalate, with U.S. President Donald Trump threatening to expand the conflict unless Iran halts attacks on Hormuz Strait shipping, CNN reported.
In recent days, Washington has extended its aerial campaigns beyond Iranian coastal radar stations and drone facilities to include transport infrastructure and, reportedly, a water desalination plant. Tehran has responded by widening its targets across seven regional countries, and state-affiliated outlets have hinted that strategic ports in Gulf Arab states could be next on the target list.
On the regulatory front, the People's Bank of China (PBOC) left its benchmark lending rates unchanged for the 14th consecutive month. The one-year loan prime rate (LPR) was held at 3.00% and the five-year LPR was maintained at 3.50%.
China's Foreign Ministry urged the U.K. to respect market principles and seek a mutually acceptable solution, including compensating Jingye Group, after London nationalized British Steel.
In company news, HKC (SHE:001399) will invest 4 billion yuan to establish a wholly-owned subsidiary, Zhejiang Huixin Advanced Semiconductor, for advanced semiconductor packaging and testing in Zhejiang, China. Shares of the semiconductor display company closed 10% higher Monday.