19.10.202602:22:41UTC+00China Stocks Fall Despite Strong Data

The Shanghai Composite Index declined 0.5% to 3,699 on Monday, while the Shenzhen Component Index fell 0.9% to 11,702, its lowest level in two months, even as economic data pointed to improving momentum. China’s economy expanded 4.5% year-on-year in the third quarter of 2026, accelerating from 4.3% in the second quarter—its weakest pace in three years—and exceeding market forecasts of 4.4%.

For the first nine months of the year, growth reached 4.6%, keeping the economy broadly on course to achieve the government’s full-year target of 4.5%–5%. Industrial output strengthened to 5.5% in September from 5.2% in August, while retail sales growth improved to 1.1% from 0.4%. The surveyed urban unemployment rate edged down to 5.2% from 5.3%, a five-month high recorded previously.

Equity benchmarks retreated despite fresh measures by authorities to shore up the stock market, including calls for companies and state-backed funds to step up share purchases and for some investors to limit selling. Among prominent decliners were SMIC (-3.8%), CATL (-2.8%) and Shennan Circuit (-2.3%).