Chinese shares were mixed on Thursday as the market struggled for direction amid government plans to inject capital into banks and US sanctions over allegations that Hong Kong and Chinese entities aided Iran's drone procurement network.
The Shanghai Composite Index, the main gauge of Chinese stocks, rose 2% to 3,388.06. The Shenzhen Component Index slid 0.3% to 10,927.51.
China is set to inject at least 400 billion yuan into Agricultural Bank of China (SHA:601288), Bank of Communications (SHA:601328), and Postal Savings Bank (SHA:601658), as part of a broader plan to boost capital buffers at major state lenders.
The US imposed sanctions on six Hong Kong and China-based entities, with the Treasury Department alleging the firms supplied components for Iran's UAV and ballistic missile programs on behalf of sanctioned Iranian companies.
In company news, Wuhan Keqian Biology (SHA:688526) received the approval of China's Ministry of Agriculture and Rural Affairs for its mycoplasma bovis live vaccine. Shares of the veterinary drug manufacturer jumped 6% Thursday.
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