The Shanghai Composite edged up 0.1% to 4,084 on Monday, while the Shenzhen Component rose 0.6% to 15,024, with both benchmarks extending gains from the previous week, supported by strong economic data. Industrial profits climbed 15.5% year-on-year in the first quarter of 2026, accelerating slightly from 15.2% in January–February. The growth came despite uncertainties linked to the Middle East conflict, which continue to threaten global demand and supply chains.
China’s industrial sector has been a key driver of post-pandemic growth, fueled by strong exports. Recent data also showed that producer prices marked a turnaround after more than three years of deflation, offering further support to industrial firms. On the corporate front, Shannon Semiconductor jumped 4% after reporting a sharp surge in first-quarter profit, driven by robust demand for AI-related electronics. In contrast, Kweichow Moutai fell 3.8% amid signs of softening domestic demand, weighing on sales and pricing.
