STOCKS | Mainland China Stocks Hit Three-Month Lows; Hang Seng Ends Slightly Higher

Mainland China stocks fell across the board on Monday, pushing key benchmarks to three-month lows as escalating US-Iran tensions hurt risk appetite and sparked profit-taking, according to RTHK.

In Hong Kong, the Hang Seng Index rose 38 points, or 0.2%, to 24,213 on turnover of HK$309.51 billion. The Hang Seng Tech Index fell 45 points, or 1%, to 4,676, while the China Enterprises Index gained 26 points, or 0.3%, to 8,065.

On the mainland, the Shanghai Composite Index dropped 82 points, or 2.06%, to 3,913, its lowest level since April 7, on turnover of 1.335 trillion yuan. The CSI300 fell 1.8%. The Shenzhen Component Index slid 523 points, or 3.48%, to 14,522 on turnover of 1.48 trillion yuan, and the ChiNext Index fell 119 points, or 3.1%, to 3,723 on turnover of 693 billion yuan.

Sector losses were broad, with defence down 6.9%, rare earth down 6.7% and satellite down 7.6%. The CSI AI index fell 3% and the CSI Semiconductors Index dropped nearly 4%. The CSI 2000 Index fell 5.7%, its biggest single-day drop since April 2025. Banks, energy and consumer staples rose 0.2% to 1.7%.

Nanhua Futures said weak domestic demand and profit-taking could keep the market range-bound, adding that blue chips may retain a relative advantage while small- and mid-caps could face further valuation adjustments.

Investors are awaiting trade data and second-quarter mainland GDP this week. A survey of 20 economists forecast China’s June exports rose 18.2% year-on-year in dollar terms, cooling from 19.4% in May.

In Tokyo, the Nikkei fell 1,315 points, or 1.92%, to 67,242, while the Topix lost 28 points, or 0.71%, to 4,007. In Seoul, SK Hynix shares fell more than 15%, sending the Kospi down 669 points, or 8.95%, to 6,806 and triggering a 20-minute trading halt.