The Shanghai Composite fell 0.8% to below 4,150, while the Shenzhen Component dropped 2.2% to 14,145 on Tuesday, reversing gains from the previous session amid renewed inflation worries as the escalating Middle East conflict pushed energy prices higher. China’s heavy reliance on Middle Eastern oil means rising energy costs could weigh on economic growth and stoke domestic inflation. Investors also tracked expectations that the US military may intensify strikes against Iran. Domestically, attention turned to the annual “Two Sessions,” scheduled from March 4 to around March 11, where authorities are expected to set economic targets, outline policy priorities, and release the 15th Five-Year Plan detailing objectives for 2026–2030. Sharp losses were seen among major companies, including Suzhou TFC Optical (-1.2%), Zijin Mining (-3.7%), TBEA Co. (-4.8%), Victory Giant (-2.3%) and China Northern Rare Earth (-7.7%).
