Chinese equities slid across the board on Monday, dragging benchmark indexes to their lowest levels since early June.
The Shanghai Composite index dropped 1.5% to close at 3,934.74, marking a significant retreat from recent highs as investor sentiment cooled sharply.
The sell-off was driven by a combination of escalating geopolitical risks in the Middle East and widespread profit-taking after a strong recent rally.
Investors are increasingly cautious about the potential for supply chain disruptions and energy price volatility stemming from tensions in the Persian Gulf, which have already begun to impact regional markets.
This decline in China follows a broader risk-off trend across Asia.
Gulf equity markets closed lower on Wednesday, with Dubai's primary share index falling 1.5% and Saudi Arabia's benchmark dropping 0.4%.