Chinese markets rebound on regulatory support hopes despite weak economic data

Chinese stock markets recovered on Monday after falling to more than one-year lows in the previous session. The Shanghai Composite rose 1.08% to close at 3,638, while the Shenzhen Component gained 1.63% to 11,010.7.

Market sentiment improved following reports of fresh regulatory measures to support the stock market. Authorities are reportedly considering expanding bank lending for share buybacks. A major state-owned bank is also planning to provide up to 200 billion yuan ($30 billion) in additional loans to two state asset management firms linked to the National Team.

However, economic data remained weak. China's manufacturing PMI fell to a three-month low of 49.3 in October 2026 from 50.1 in September. The non-manufacturing PMI also declined to 49.7 from 50.2, indicating contraction for the sixth time this year.

Among major gainers, PetroChina rose 1.30%, Kweichow Moutai gained 3.38%, CATL advanced 3.12%, and BYD climbed 3.06%.

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