The Shanghai Composite fell 1.6% to below 4,060, while the Shenzhen Component dropped 2.6% to 13,810 on Monday, extending last week’s losses as oil topped $100 amid the escalating Middle East conflict, raising inflationary pressures and threatening global growth. The US-Israeli war with Iran entered its second week with no resolution in sight, while key Middle Eastern producers have cut output as shipments through the Strait of Hormuz remain halted. China, the world’s largest energy importer, is somewhat shielded by its substantial crude reserves. Domestically, data showed annual inflation rose to a three-year high in February, partly driven by Lunar New Year holiday spending. Among notable decliners were Zhongji Innolight (-5.6%), Eoptolink Technology (-5.8%), Suzhou TFC (-7.6%), Zijin Mining (-4.9%), and Victory Giant (-5.1%).
