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2026.03.3107:38:45UTC+00China Stocks Post Worst Monthly Loss Since 2024

The Shanghai Composite Index fell 0.8% to close at 3,892, while the Shenzhen Component declined 1.8% to 13,478 on Tuesday. Both benchmarks recorded their weakest monthly performance since January 2024, as the protracted conflict in the Middle East continued to weigh on investor sentiment.

Earlier in the month, optimism had picked up after official data showed China’s manufacturing PMI rising to a one-year high of 50.4, while the non-manufacturing PMI inched up to 50.1, indicating renewed expansion in both sectors. However, risk appetite faded after President Trump signaled a possible halt to US operations against Iran even without a reopening of the Strait of Hormuz, and Iran reportedly struck a Kuwaiti oil tanker near Dubai.

Energy shares outperformed on a monthly basis. PetroChina jumped 12.3%, marking its strongest month since October 2025, while CNOOC advanced 11.5% for its best monthly showing since January. Both benefited from a bullish outlook for oil prices amid persistent Middle East tensions.

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