The Shanghai Composite fell 0.5% to 4,150 on Wednesday, while the Shenzhen Component slipped 0.2% to 15,534, with both benchmarks reversing gains from the previous session as a global bond selloff dampened risk sentiment. Surging oil prices and persistent inflation concerns tied to the prolonged Middle East conflict pushed global bond yields to multi-year highs, with the 30-year US Treasury yield reaching its highest level since 2007. On the monetary policy front, the PBoC kept benchmark lending rates unchanged for a twelfth straight month in May, with the one-year loan prime rate at 3% and the five-year LPR at 3.5%. The decision underscored policymakers’ cautious stance amid uncertainty related to the conflict, even as consumer and producer inflation accelerated due to higher energy costs and supply chain disruptions. Among major decliners were China Mobile (-2%), Foxconn Industrial Internet (-1.6%), Contemporary Amperex Technology (-0.8%), and Luxshare Precision Industry (-2.1%).