15.07.202602:26:22UTC+00China Stocks Mixed on Signs of Uneven Growth

The Shanghai Composite edged up 0.2% to 3,974 on Wednesday, while the Shenzhen Component slipped 0.3% to 14,891, as investors assessed evidence of an uneven economic recovery in China. Second-quarter GDP growth slowed to 4.3% year-on-year from 5.0% in the first quarter, below market expectations of 4.5%. This was the weakest pace of expansion since the fourth quarter of 2022 and fell short of the government’s 2026 target range of 4.5%–5.0%.

Fixed-asset investment declined 5.7% year-on-year in the first half, a sharper contraction than the anticipated 4.9% drop and worse than the 4.1% decrease recorded in the January–May period.

There were some signs of resilience: industrial production accelerated in June to a three-month high of 5.3%, and retail sales unexpectedly returned to growth, rising 1%. The urban unemployment rate also improved, easing to a one-year low of 5.0%.

Financial stocks underperformed, with notable declines in Industrial and Commercial Bank of China (-0.9%), Agricultural Bank of China (-1.3%), and China Construction Bank (-1.9%).