China's Indexes Dropped to One-Month Lows Amid Twin Headwinds

Li Chen
11 Sep, 2026
Hong Kong

China's indexes decreased and fell to one-month lows amid twin headwinds and anxieties related to domestic macroeconomic conditions. 

The Hang Seng Index declined 1.1%, and the mainland-focused CSI 300 Index eased 1.6% as crude oil prices rebounded to five-week highs. 

Brent crude oil prices per barrel increased by 0.6% to $108.25, as the ongoing war between the U.S. and Israel against Iran is expected to last for several more years. 

Moreover, Iran-backed Houthi rebels gained control of a key port in Yemen, lifting risks to Saudi oil tankers traveling through the Red Sea. 

The Trump administration officials and U.S. military commanders confirmed that the war on Iran is likely to extend to several more years as the U.S. struggled to replenish missiles and air strike capabilities. 

Iran's leadership also confirmed that the Islamic Republic is ready for an extended war despite severe economic costs. 

Market sentiment in China and Asia was weak after the yield of the U.S. Treasury notes advanced to 4.97%, a sharp escalation after the U.S. producer price inflation accelerated to 5.4% in August from 4.8% in July. 

Domestically, investors shifted their attention to a raft of economic data due next week, including fixed-asset investment, house prices, industrial output, retail sales, and the jobless rate. 

 

China Indexes and Stocks 

The Hang Seng Index decreased 1% to 24,694.84, and the CSI 300 Index declined 1.6% to 4,477.74. 

For the week, the Hang Seng index dropped 3.9%, and the CSI 300 Index eased 2%.

Resource and technology sector stocks dominated trading in Shanghai and Hong Kong. 

Zijin Mining Group declined 8.2% to HK $34.28, Zijin Gold International eased 4.4% to HK $157.0, and PetroChina Group edged up 0.5% to $10.14.

NAURA Technology Group fell 2.8% to ¥620.60, SMIC eased 2.2% to HK $62.15, and CXMT Corp. declined 3.9% to ¥54.96.