Chinese shares opened lower on Wednesday as escalating geopolitical tensions in the Middle East revived inflation concerns.
The Shanghai Composite Index, the main gauge of Chinese stocks, went down 0.4% to 3,963.07. The Shenzhen Component Index declined 1.0% to 13,732.18.
Westpac analysts said the prospect of additional disruptions in the Strait of Hormuz has rekindled inflationary concerns, prompting a broad selloff in equities across most developed markets and sparking a sharp downturn in global bond prices, Reuters reported.
On the domestic front, China on Sept. 1 imposed a 20% individual income tax on dividends, interests, and bonuses accrued by foreign individuals from foreign-invested enterprises.