The Shanghai Composite edged up 0.2% to 4,169 on Thursday, hitting a new two-month high, while the Shenzhen Component was flat near 15,458, supported by growing hopes of a de-escalation in the Middle East. Reports indicated the US and Iran are nearing a memorandum to end hostilities, potentially paving the way for the gradual reopening of the Strait of Hormuz. However, Trump warned that military action could resume if Tehran fails to comply, while Iran has yet to formally respond. Attention is also turning to a highly anticipated summit next week between Trump and Chinese President Xi Jinping. Meanwhile, China’s financial regulator reportedly told major state-owned banks to halt new lending to five refiners sanctioned by the US over alleged ties to Iran’s oil trade, despite earlier guidance from China’s Commerce Ministry urging firms to ignore US sanctions. Top gainers included China Life Insurance (2.1%), Zijin Mining Group (2.1%), and Victory Giant Technology (2.7%).