Shanghai Composite fell more than 1%, led by declines in gaming, film and media, and pharmaceuticals & healthcare stocks.

Two US senior officials told the Wall Street Journal that Iran’s Islamic Revolutionary Guard Corps attacked a Singapore-flagged freighter in the Strait of Hormuz on Thursday, an incident that tests last week’s US-Iran agreement to end hostilities and reopen the vital shipping lane. The UK Maritime Trade Operations said the vessel’s wheelhouse was damaged but there were no injuries; the strike occurred near Oman’s coast. Iranian paramilitary naval forces had warned hours earlier that ships must not use unapproved routes.

Zhongtai Securities co-head of research Wang Fang said at a forum that market trading this year has focused on supply-chain shortages within the AI theme, a pattern underpinned by profitability. China’s electronics sector delivered Q1 profit growth that far outpaced revenue, and leading indicators such as inventories remain healthy. Wang said large-model vendors are expanding rapidly; an inference-driven surge and widespread Agent deployment will support sustained high capex in the AI sector, while upstream bottlenecks persist, strengthening the case for durable industry growth.