JKB Financial Services Ltd.

As on : 22-Apr-2026

Market Commentary - Foreign Markets
22-Apr-2026 15:33

China markets rise on tech strength despite Middle East uncertainty

Chinese equity markets ended higher on Wednesday, showing resilience even amid ongoing geopolitical tensions in the Middle East. The Shanghai Composite rose 0.52% to close at 4,106, reaching a one-month high, while the Shenzhen Component gained 1.3% to 15,177, its strongest level since December 2021.

Sentiment remained supported even though uncertainty continued around the Israel'Iran situation. Although US President Donald Trump extended a temporary ceasefire, investors remained cautious as Iran showed reluctance toward further negotiations. However, concerns from the conflict were largely offset by China's strong energy security position, supported by large reserves, diversified import sources, and rapid growth in renewable energy capacity.

Technology stocks were the main drivers of the rally. Shares such as Hygon Information Technology, Zhongji Innolight, Eoptolink Technology, and NAURA Technology saw strong gains, rising between 2% and nearly 8%, as investors continued to favor the sector.

On the other hand, Contemporary Amperex Technology declined after reports that Sinopec sold a large stake worth about $768.5 million through an accelerated share sale, which weighed on the stock. Overall, the market showed strength led by tech buying, even as geopolitical risks remained in the background.

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