The Shanghai Composite dropped 1.9% to around 3,880, while the Shenzhen Component fell 1.3% to 13,690 on Monday, with mainland stocks hitting three-month lows as rising Middle East tensions pressured global equities. The US-Israel war with Iran entered its fourth week with no sign of easing, with President Donald Trump threatening strikes on Iranian power plants if the Strait of Hormuz is not reopened, while Tehran warned it would target key US and Israeli assets in the region if its energy facilities were hit. Elevated oil prices have fueled inflation concerns and raised expectations for interest rate hikes from major central banks, while weighing on global growth prospects. Technology stocks led the losses, with notable declines from Eoptolink Technology (-1.7%), Zhongji Innolight (-2.9%), Huagong Tech (-1.2%), Victory Giant (-4.6%) and Suzhou TFC Optical (-3.6%).
