Chinese markets recover as stronger economic data lifts sentiment

Chinese markets closed higher on Monday, recovering from early losses after stronger economic data improved investor sentiment. The Shanghai Composite rose 0.39% to 3,730.9, while the Shenzhen Component gained 0.13% to 11,817.4.

China?s economy grew 4.5% year-on-year in the third quarter of 2026, up from 4.3% in the previous quarter and above market expectations of 4.4%. Economic growth reached 4.6% in the first nine months of the year, keeping the country on track to meet its full-year growth target of 4.5% to 5%.

Other economic indicators also showed improvement. Industrial output rose 5.5% in September, compared with 5.2% in August, while retail sales growth increased to 1.1% from 0.4%. The surveyed urban unemployment rate edged down to 5.2% from 5.3% in the previous month.

The gains came despite ongoing efforts by Chinese authorities to support the stock market, including encouraging companies and state-backed funds to buy more shares and asking some investors to limit selling. Financial stocks led the market higher, with Industrial and Commercial Bank of China rising 1.42% and Agricultural Bank of China gaining 3.45%.

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