China and Hong Kong shares closed mostly unchanged as renewed geopolitical tensions following failed U.S.–Iran peace talks dampened risk appetite. Investors remained cautious amid concerns over volatility and potential disruptions to global markets.

China shares flat as US-Iran peace talks collapse, blockade looms

April 13, 2026

Reuters

FILE PHOTO: People walk near a screen displaying the Hang Seng stock index at Central district, in Hong Kong, China, February 3, 2026.

Tyrone Siu/Reuters

China and Hong Kong stocks closed flat on Monday as the collapse of U.S.-Iran peace talks dampened risk appetite across the region.

The Shanghai Composite Index .SSECgained less than 0.1% to 3,988.56 at market close, and the blue-chip CSI300 Index .CSI300 added 0.2%, both clawing back from steep losses at the opening hour.

Hong Kong's benchmark Hang Seng .HSI lost 0.9% to 25,660.85. The Hang Seng Tech Index .HSTECH was down 0.8%.

Around the region, MSCI's Asia ex-Japan stock index .MIAPJ0000PUS was 0.8% lower.

The U.S. military said it would begin a blockade of all maritime traffic entering and exiting Iranian ports and coastal areas on Monday after weekend talks failed to reach a deal to end the war in Iran, jeopardizing a fragile two-week ceasefire.

"Ongoing geopolitical tensions are making it hard for the market to break out of its current slump," analysts at Soochow Futures wrote in a note. "High volatility and choppy, range-bound trading are likely to persist for the near term."

Still, China's domestic economic recovery remained intact with factory-gate prices rising for the first time in more than three years in March, they added.

Investors are also awaiting key China macro data releases this week, including trade data on Tuesday, March credit figures and Q1 real GDP.

"China looks relatively attractive given the domestically orientated nature of its economy and equity markets, as well as valuations and risks to current earnings expectations," analysts at BNP Paribas said in a note.

"If the situation remains uncertain and energy prices stay elevated, then we would expect this outperformance to continue."

Among winning sectors, the CSI New Energy Index .CSI399808 added 1.9% and the CSI New Energy Vehicle Index .CSI399976 climbed 1.7%. The CSI 300 Energy Index .CSI000908 gained 0.5%.

Weighing on the markets, the CSI Oil and Gas Industry Sub Index .CSIH30198 lost 0.9%, while liquor makers .CSI399997 were down 0.5%.

-Reporting by Jiaxing Li in Hong Kong; Editing by Rashmi Aich and Thomas Derpinghaus/Reuters