Chinese equities closed flat as sentiment was slightly lifted by a JPMorgan report on Chinese stocks' growing attractiveness, while uncertainty lingers over the negotiations between U.S. and Iran following fresh airstrikes in the Gulf region.

The Shanghai Composite Index rose marginally to finish Thursday's trade at 4,098.64. The Shenzhen Component Index inched 0.9%, or 125.42 points, to 15,861.89.

JPMorgan Chase survey showed that more international investors are considering investing in Chinese equities, particularly technology stocks, with the surveyed rising to 57% from 51% a year earlier.

Kwang Kam Shing, JPMorgan's chairwoman for North Asia, said foreign investors are being attracted to Chinese and Hong Kong equities due to their low valuations and the tech firms' robust research and development capabilities, South China Morning Post reported.

Meanwhile, investor sentiment further weakened after the U.S. launched new airstrikes against a military site in Iran and shot down four drones, while Tehran retaliated by striking a U.S. air base. The attacks threaten the ongoing talks between both sides, which could have ended the war in the Middle East.

In corporate news, CIG Shanghai's (HKG:6166, SHA:603083) Shanghai shares rose 7.7% as it considers raising HK$1.98 billion through a stock offering.

Shenzhen Tianyuan DIC Information Technology (SHE:300047) climbed 6.6% after Chair Chen You was released from residential detention.

China Resources Microelectronics (SHA:688396) jumped 5.8% amid plans to invest 193.9 million yuan into a partnership fund.