Chinese equities closed lower on Thursday, as mounting concerns over persistent inflationary pressures and deteriorating global risk appetite weighed heavily on investor confidence.
The Shanghai Composite Index, the main gauge of Chinese stocks, slipped 0.4% to 3,934.40. The Shenzhen Component Index fell 0.8% to 13,617.67.
The downturn mainly stemmed from escalating geopolitical friction between the U.S. and Iran, which was followed by a 3.4% surge in Brent crude to $101.21 per barrel on Wednesday and raised market fears of a protracted supply crunch.
In China news, the country placed second in Brand Finance's inaugural Trade in Services 100 2026 ranking, with 21 brands worth a combined $876.8 billion, representing 19% of the total ranking value. TikTok/Douyin emerged as China's most valuable trade in services brand, ranking fourth globally at $153.5 billion.
On the corporate front, Jiangsu Shemar Electric (SHA:603530) won 21 bid packages for about 235 million yuan in China Electrical Equipment's 2026 centralized procurement project. Shares of the power system substations manufacturer closed 8% lower Thursday.