The Shanghai Composite Index declined 0.5% to 3,931 on Monday, while the Shenzhen Component Index fell 1% to 13,810, as weak economic data deepened concerns over China’s growth outlook. Official PMI data showed the composite index inching up to 49.5 in August from 49.3 in July but still signaling contraction, with both manufacturing (49.8) and non-manufacturing (49.0) activity continuing to shrink.
The figures added to evidence of a broader slowdown in economic momentum. Industrial profit growth eased to 17.6% year-on-year in the first seven months of 2026, down from 18.7% in the January–June period. Recent indicators for fixed-asset investment, industrial production, and retail sales also missed expectations, strengthening market speculation that Beijing may introduce further policy support.
Major decliners included Foxconn Industrial Internet (-2.3%), Zijin Mining (-5.6%), CATL (-0.9%), Zhongji Innolight (-1.6%), and BYD (-1.2%).
