Chinese shares were down on Thursday as the U.S. sanctioned several Chinese entities over their alleged links to the Iran military and amid escalating conflict in the Middle East.
The Shanghai Composite Index, the main gauge of Chinese stocks, slid 0.2% to 3,987.01. The Shenzhen Component Index fell 0.7% to 14,851.98.
The U.S. government imposed sanctions on multiple entities and individuals in mainland China and Hong Kong for allegedly supporting procurement and financial networks linked to Iran's Islamic Revolutionary Guard Corps and the Iranian military.
Among them are entities that helped procure weapons for the Iranian military, and a Hong Kong-based company that works with Iran's clandestine banking network.
Meanwhile, the U.S. and Iran traded fresh strikes for a second straight day, shattering the fragile April ceasefire, BBC News reported.
The U.S. said it hit military, surveillance and radar sites in southern Iran in "self-defense strikes." Iran hit back immediately, launching strikes on U.S. military assets, including bases in Bahrain and Kuwait.
In company news, Shanghai Yizhong Pharmaceutical (SHA:688091) said China's drug regulator approved the clinical trial application for its self-developed drug candidate, YXC-002, for the treatment of non-small cell lung cancer with estimated glomerular filtration rate mutations. Shares of the drug manufacturer closed 4% lower Thursday.