The Shanghai Composite Index rose 0.48% to close at 4,180, marking a two-month high, while the Shenzhen Component increased by 1.18% to reach 15,641, its highest in five years. This positive movement in the Chinese stock market is attributed to improved investor sentiment following reports that the United States and Iran are nearing an agreement to reduce hostilities, which could facilitate the reopening of the Strait of Hormuz, a crucial global oil shipping route. However, former President Donald Trump has warned that military action could resume if Iran does not adhere to the terms of the agreement. Investors are also focused on the upcoming summit between Trump and Chinese President Xi Jinping, which may provide insights into the future of US-China relations. Additionally, China's financial regulator has reportedly instructed state-owned banks to halt new lending to five refiners sanctioned by the US over alleged connections to Iran's oil trade, contradicting earlier guidance from China's Commerce Ministry that encouraged companies to disregard US sanctions. Technology stocks performed well, with notable gains from Cambricon Technologies (+2.36%), Zhongji Innolight (+2.51%), and Eoptolink Technology (+7.85%).