China Stocks Struggle for Direction

The Shanghai Composite edged down 0.1% to 3,694 on Tuesday, while the Shenzhen Component traded flat around 11,538 as investors weighed stronger economic data against concerns over corporate profitability. China’s industrial profits rose 15.5% year-on-year to CNY 6.03 trillion in the first nine months of 2026, easing from 15.7% growth in the January-August period. Industrial output also strengthened, expanding 5.5% year-on-year in September from 5.2% in August and marking the fastest growth since March. On the corporate front, CITIC Securities fell nearly 3% after reporting a decline in Q3 net profit, as market volatility weighed on investment income. Concerns over corporate profitability continue to weigh on Chinese equities, which slid into a bear market late last week, erasing USD 2.4 trillion in market value from their May peak. Investors are now watching developments at the Communist Party’s Fifth Plenum for policy signals and further details on China’s economic priorities.