Chinese Stocks Muted Amid Failed US-Iran Talks, Improved GDP Outlook
Chinese equities closed flat, mainly in positive territory, slightly rebounding from earlier losses due to threats of the U.S. blocking the Strait of Hormuz.The Shanghai Composite Index moderately rose to close Monday's trade at 3,988.56. The Shenzhen Component Index added 0.7%, or 98.39 points, to 14,407.86.Investors are still cautious as talks between the U.S. and Iran crumbled, prompting President Donald Trump to announce an immediate naval blockade of the strait, which is a critical global oil passageway.Despite the growing Middle East tensions, the Asian Development Bank, or ADB, lifted its economic forecast for China for the year, bringing its gross domestic product 4.6% from the previous forecast of 4.3%. The ADB attributed the improved outlook on the government's support for high-tech innovation and continued exports as China leans towards non-U.S. global trade partners.In corporate news, Haisco Pharmaceutical (SHE:002653) soared after granting AbbVies exclusive rights for Nav1.8 inhibitors.Jinan Shengquan (SHA:605589) rose 2.7% amid plans to issue convertible bonds worth 2.50 billion yuan.