Chinese equities retreated after two days of gains as sentiment waned over mixed signals on potential talks between the U.S. and Iran.

The Shanghai Composite Index lost 1.1%, or 42.75 points, to close Thursday's trade at 3,889.08. The Shenzhen Component Index slipped 1.4%, or 194.56 points, to 13,606.44.

The White House is positive that discussions with Tehran will push through as a meeting is being arranged in Pakistan. However, Iranian foreign minister, Abbas Araghchi, said they have no intention to negotiate for now, despite acknowledging that messages were exchanged with the U.S. Military action is still ongoing within the Middle East region.

Amid delays due to the Middle East conflict, Trump plans to visit Beijing in May to talk about trade and other pressing issues, such as Taiwan.

In corporate news, Huagong Tech (SHE:000988) slumped 9% despite its 2025 attributable net profit jumping 20% to 1.47 billion yuan from a year earlier.

Trina Solar (SHA:688599) dropped 3.8% after its unit, Trina Solar (Changzhou) Technology, plans to invest 45 million yuan to establish a joint venture.

China Suntien Green Energy's (SHA:600956, HKG:0956) Shanghai shares fell 5% despite its 2025 attributable net profit rising 9.2% year on year to 1.83 billion yuan.