Chinese markets demonstrated remarkable resilience during the Iran war turmoil, with onshore stocks falling only about 1% this week compared to the more than 6% decline across broader Asian markets. The yuan posted the smallest drop against the dollar among major Asian currencies, slipping about 0.6% while regional peers like the South Korean won and Philippine peso both dropped more than 2%.

Chinese sovereign bonds have significantly outperformed major peers, with the 10-year government bond yield falling by approximately two basis points to settle at 1.79% on Friday. Analysts attribute this stability to Beijing's emphasis on policy continuity and economic support measures announced during the National People's Congress.

Premier Li Qiang reinforced this message of stability during his address to lawmakers, pledging to maintain an accommodative monetary stance. Authorities have instructed top Chinese oil refiners to suspend exports of diesel and gasoline as the Middle East conflict disrupts crude arrivals. The combination of policy support and strategic measures has positioned Chinese assets as a relatively safe haven within volatile Asian markets.