China Stocks Open Week on Uneven Note

The Shanghai Composite edged up 0.2% to 3,820, while the Shenzhen Component fell 0.4% to 12,589 on Monday, as investors turned cautious ahead of key economic data due later this week. China’s economic outlook remains heavily reliant on exports as weak domestic demand continues to weigh on growth. Data are expected to show accelerating consumer and producer inflation, while export growth is projected to edge higher and import growth to slow. The figures will offer fresh insights into the resilience of external demand and the challenges facing China’s domestic economy. Meanwhile, the EU said China had agreed to reduce hybrid car exports by millions of units, as the bloc moves to curb imports through safeguard measures. Financial stocks gained, particularly Agricultural Bank of China (1%), Bank of China (1.5%) and China Merchants Bank (1.1%). In contrast, technology stocks fell, led by Eoptolink Technology (-1.9%), Zhongji Innolight (-1.7%) and Victory Giant Technology (-1.4%).