Asia
China Shares Fall as Tensions Flare Over Hormuz Strait; Fiberhome Telecommunication Technologies Plunges 10%
Chinese equities closed deep in negative territory on Monday as tensions rose over the Strait of Hormuz following fresh hostilities between the U.S. and Iran.The Shanghai Composite Index, the main gauge of Chinese stocks, closed 2.1% lower at 3,913.79. The Shenzhen Component Index plunged 3.5% to 14,522.85.The U.S. launched fresh strikes on Iran Sunday evening, extending a days-long exchange of attacks. Within hours, Iran's Islamic Revolutionary Guard Corps claimed it had struck U.S. military facilities in Kuwait, Jordan and Bahrain, BBC News reported.The escalating violence jeopardizes June's interim U.S.-Iran deal, as Tehran says it has closed the Strait of Hormuz indefinitely, while Washington maintains it remains open, according to the report.Meanwhile, Chinese financial regulators are cracking down on local rating agencies' AAA or risk-free ratings for high-interest borrowers because of concerns that the bloated ratings could mislead smaller investors.China's central bank mandated domestic debt watchers to review high credit ratings, especially for bonds with higher yields compared with government debt.In company news, Fiberhome Telecommunication Technologies (SHA:600498) agreed to acquire the remaining 60% stake in 40%-owned Fujikura FiberHome Optoelectronic Materials Technology for 500.2 million yuan. Shares of the telecommunications equipment company closed 10% lower Monday.
Shanghai Composite^SZSESHA:600498
