Chinese Stocks Rise on Hopes for End of Iran War, IPO Prospects Shine

Asian stock markets ended with some measure of relief this week despite investor difficulties in gauging whether the war in Iran was nearing resolution or might drag on, keeping energy supplies tight and prices high. The Chinese mainland market for initial public offerings brightened prospects.

The Shanghai Composite Index rose 2.7 percent in the four trading days after a Monday holiday, wrapping up the week at 3,986 points, The index rose 0.5 percent on Friday, a day before talks between the US and Iran were scheduled to start in what has been described as a "make-or-break" moment in the search for a permanent ceasefire. The Shenzhen Component Index climbed 7.2 percent for the week.

Hong Kong's Hang Seng Index jumped 3.1 percent in four trading days after a Monday holiday. Japan's Nikkei surged 7.2 percent, and South Korea's Kospi soared 9 percent for the week.

The markets posted their strongest gains on Wednesday after US President Donald Trump walked back his threat to wipe out the "whole civilization" of Iran and agreed to a two-week ceasefire with Tehran, brokered by Pakistan, to allow time for negotiations.

"Although there remains a lot of uncertainties, people breathed a huge relief amid expectations of positive signs of progress to end the war," said Zhang Xucheng, an analyst with Great Wall Securities. "Almost all indices extended their rallies after Wednesday despite the fact that the Strait of Hormuz hasn't been reopened as fast as the ceasefire indicated."

Another incentive for China's stock markets was the addition of relaxed listing standards for the tech-focused ChiNext board in Shenzhen, which jumped 3.3 percent on Friday to 3,448 – highest since December 2021. For the week, the ChiNext jumped 9.5 percent.

The new listing rules for ChiNext, China's Nasdaq-style board for startups, will allow innovative companies in emerging advanced industries to seek initial public offerings even if they have yet to show profits. It's part of expanded financing channels for promising companies as Beijing seeks to develop self-sufficiency in technology.

In the first quarter of this year, the Class A-share markets on the Chinese mainland recorded 30 new listings, raising a combined 25.9 billion yuan (US$3.8 billion), up from 27 IPOs raising 16.3 billion yuan in the same period of 2025, according to consulting firm Deloitte China's Capital Market Services. The Shanghai Stock Exchange led fundraising, with 15.4 billion yuan from 10 IPOs, while Beijing Stock Exchange had 16 IPOs that netted 4.9 billion yuan.

The Chinese mainland IPO market is expected to sustain that momentum this year, said Alvin Tse, a capital markets service leader at Deloitte China.

Hong Kong continued to top global IPO fundraising in the first quarter of 2026, boosted by major share sales by Muyuan Foods, Eastroc Beverage and Montage Technology. The Nasdaq in New York ranked second, mainly with the listings of Japanese digital finance platform PayPay Corp and construction tech company EquipmentShare.com.

A Hong Kong-based energy-saving solutions provider was the only Chinese company to list in the US in the first quarter, raising US$12 million. That was a sharp drop from the 21 China-concept stocks that listed in the first quarter of 2025, raising US$303 million, according to Deloitte.

On Wall Street, major markets were mixed on Friday amid lingering misgivings about the prospects for a resolution to the Iran war. The broad S&P 500 index slipped 0.1 percent, while the Nasdaq edged up 0.35 percent. For the week, the three major indexes posted their best performance since November, with the S&P 500 adding 3.6 percent and the Nasdaq up 4.7 percent.

Global oil prices fell below US$100 a barrel on hopes that the Strait of Hormuz, which carries a fifth of the world's oil and natural gas, will fully reopen soon. Benchmark Brent crude futures ended the week at about US$94.26.