The Shanghai Composite inched up 0.1% to 4,084 on Monday, while the Shenzhen Component advanced 0.6% to 15,024. Both indices extended the prior week’s gains, underpinned by robust economic data. Industrial profits rose 15.5% year-on-year in the first quarter of 2026, a slight acceleration from the 15.2% increase recorded in January–February, despite lingering uncertainties stemming from the Middle East conflict, which continues to pose risks to global demand and supply chains.
China’s industrial sector has remained a central pillar of post-pandemic growth, supported in large part by resilient export activity. Recent figures also indicated that producer prices have finally turned positive after more than three years of deflation, providing additional relief to industrial firms.
At the corporate level, Shannon Semiconductor gained 4% after posting a sharp increase in first-quarter profits, buoyed by strong demand for AI-related electronics. By contrast, Kweichow Moutai dropped 3.8% amid signs of cooling domestic demand, which has pressured both sales volumes and pricing.
