The Shanghai Composite edged down 0.1% to around 3,983, while the Shenzhen Component fell 0.9% to 13,889 on the first trading day of September, as escalating tensions in the Middle East overshadowed improving signals from China's manufacturing sector.
The US and Iran exchanged strikes for the first time in nearly a month, with American forces targeting an island in the Strait of Hormuz and Iran retaliating with attacks on the UAE and Jordan.
The latest hostilities clouded the outlook for restoring normal shipping operations through the strategic waterway.
On the domestic front, a private survey showed China's manufacturing PMI rose to 51.5 in August from a four-month low of 50.9 in July, exceeding forecasts of 51.0.
This followed official data showing that the manufacturing PMI rose to 49.8 from 49.2, also topping market expectations of 49.7.
Among the notable decliners were Foxconn Industrial Internet (-2.1%), SMIC (-1.5%), CATL (-0.8%), and Eoptolink Technology (-1.9%).
Sumber : Trading Economics
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