China and Hong Kong Indexes Lacked Direction as Investors Weighed US-Israel War On Iran

Li Chen
20 Mar, 2026
Hong Kong

 

Stock market indexes in China and Asia rebounded after the U.S. and Israel were forced to halt the latest missile attacks targeting oil fields in Iran. 

The Hang Seng Index fell 0.5%, and the mainland-focused CSI 300 Index advanced 1% amid expectations of receding tensions in the Middle East. 

Iran struck a severe blow to gas storage facilities in Qatar, raising fears of energy product shipment disruptions through the Strait of Hormuz. 

About 20% of the world's natural gas supply passes through the narrow waterway, connecting Middle Eastern energy producers and markets in India, China, Japan, and South Korea.

So far in the first three weeks of war, Iran has dominated and controlled the Strait of Hormuz, disrupting energy supplies and driving energy prices higher by 50%. 

Moreover, the Trump administration has requested an additional $20 billion in funding to accelerate the building of missiles, interceptors, and drones. 

Brent crude oil prices fell 2% to $107.98 a barrel after Israel said it no longer plans to attack Iranian energy facilities and Iranian military capabilities have been "degraded."

Still, crude oil traded above $100 a barrel, supporting the case for a significant slowdown in global economic growth and higher food prices worldwide. 

 

China Indexes and Stocks 

The Hang Seng Index decreased 0.5% to 25,375.31, and the mainland-focused CSI 300 Index advanced 1% to 4,626.79.

Crude oil prices swung wildly this week as investors reacted to the fast-changing situation in the Middle East. Moreover, Qatar, Kuwait, Bahrain, and the UAE have suffered multiple attacks on their energy infrastructure, which has raised concerns about the stability of oil supplies and contributed to the volatility in crude oil prices. 

Alibaba Group Holding dropped 6% to HK $124.20 after the e-commerce platform operator reported weaker-than-expected December quarter results.

Revenue increased 2% from a year ago to 284.8 billion yuan, or $40.7 billion. Excluding revenue from the disposed businesses of Sun Art and Intime, revenue on a comparable basis would have grown by 9%.

Net income plunged 66% to 15.2 billion yuan, or $2.2 billion, primarily because of a decrease in operating income. 

The elevated level of investment in cloud computing and artificial intelligence infrastructure is likely to dent the earnings outlook in the near future.