China stocks inch higher as strong GDP offsets weak AI mood

SHANGHAI: Chinese stocks saw a slight increase on Monday, as a positive third-quarter GDP report offset concerns surrounding AI supply chain stocks. The CSI300 Index, China's blue-chip gauge, rose by 0.1% by midday, while the Shanghai Composite Index climbed 0.2%. The Hong Kong market, currently on a local holiday, is set to reopen on Tuesday.

The Chinese economy expanded by 4.5% year-over-year in the third quarter, surpassing expectations and alleviating the need for Beijing to expedite stimulus measures to meet its annual growth objective. Retail sales in September also demonstrated a pickup. According to ANZ analysts, "Despite the data surprise in September, the performance in the first nine months of 2026 still heightened domestic and global apprehensions about China's imbalances."

They added, "Fiscal support remains essential, as policy constraints impede monetary easing amid balance-sheet recession pressures." The tech-focused STAR50 Index declined 1.7%, reflecting lingering unease about the AI chip supply chain. Traditional sectors like finance and spirits led the market gains, surging 0.8% and 1.4%, respectively.

Unitree shares jumped over 10%, marking a rebound from a record low reached last week, whereas memory chipmaker CXMT slipped 7.6%. The CSI300 Index declined 3.4% last week, marking its worst performance since mid-July and a 10-week losing streak. Investors are now focusing on a significant financial forum in Beijing, where China's securities regulator is scheduled to address the audience this afternoon.