Chinese shares tracked the losses of their global peers on Friday, as market appetite for risky assets diminished amid the escalation of conflict in the Middle East.

The Shanghai Composite Index, the main gauge of Chinese stocks, fell 0.8% to 3,377.00. The Shenzhen Component Index dropped 1.1% to 10,122.11.

Israeli airstrikes in Iran earlier on Friday resulted in the death of the chief of the Iranian Armed Forces and the commander-in-chief of Iran's Islamic Revolutionary Guard Corps as well as two of the country's top nuclear scientists.

On the domestic front, the Chinese government is looking to boost its cooperation with the European Central Bank, including the reform of the international monetary system.

China will also step up reviews of export license applications for rare-earth-related items, according to the Ministry of Commerce. Spokesperson He Yadong said that while some licenses have already been approved, controls remain vital due to the dual-use nature of rare earths in both military and civilian sectors.

In company news, Western Region Gold (SHA:601069) plans to acquire Xinjiang Meisheng Mining for 1.66 billion yuan. Shares of the gold smelter jumped 10% Friday.