China stocks inch higher as strong GDP offsets weak AI mood

SHANGHAI: China stocks edged up on Monday, as an upbeat third-quarter GDP reading countered soft sentiment around AI supply chain names.

China’s blue-chip CSI300 Index edged up 0.1% by the lunch break, while the Shanghai Composite Index gained 0.2%.

The Hong Kong market is closed for a local holiday and will resume trading on Tuesday.

The economy expanded 4.5% year-on-year in the third quarter, topping forecasts and reducing the urgency for Beijing to step up support to meet its annual growth target.

Retail sales for September also accelerated.

“Despite the data surprise in September, the performance in the first nine months of 2026 still intensified domestic and global concerns about China’s imbalance,” ANZ analysts said in a note.

“Fiscal support remains crucial as policy constraints limit monetary easing amid balance-sheet recession pressures,” they said.

The tech-focused STAR50 Index was down 1.7%, as sentiment around the AI chip supply chain remained weak.

Traditional sectors such as financials and liquor led gains onshore, up 0.8% and 1.4%, respectively.

Unitree shares surged more than 10%, rebounding from a record low hit last week, while memory chipmaker CXMT fell 7.6%.

The CSI300 Index lost 3.4% last week, the worst showing since mid-July, down for 10 straight weeks.

Investors are turning their attention to a key financial forum in Beijing this afternoon, where China’s securities regulator is due to speak.