The Shanghai Composite Index edged up 0.06% to close at 3,989 on Monday, while the Shenzhen Component Index gained 0.69% to 14,408, as both benchmark indices showed resilience despite rising geopolitical tensions. Sentiment remained cautious after the collapse of US–Iran peace talks, and President Donald Trump announced a full naval blockade of the Strait of Hormuz. Trump also warned that countries, including China, could face tariffs of up to 50% if they support Iran militarily, though Beijing denied any involvement. Nevertheless, Chinese equities have remained relatively firm, supported by policy backing, energy resilience, and early signs of economic stabilisation, including an end to prolonged factory-gate deflation. Notable gainers included banking stocks such as Industrial and Commercial Bank of China (0.82%) and Agricultural Bank of China (0.76%). Other notable gainers included Contemporary Amperex Technology (2.68%), BYD (2.54%), and Sungrow Power Supply (2.64%).