China stocks rise despite weak economic data

Chinese stocks ended higher on Monday, recovering from earlier losses despite fresh signs of weak economic activity. The Shanghai Composite rose 0.86% to 3,986.3, while the Shenzhen Component gained 0.44% to 14,015.

August PMI data showed that Chinas economy remained under pressure. The Composite PMI improved slightly to 49.5 from 49.3 in July but stayed below the 50 mark, indicating contraction. Both manufacturing and services activity remained weak.

The government also announced steps to support the struggling property sector. These include issuing mortgages only after housing projects are completed and encouraging local governments to boost sales of completed homes.

Banking stocks led the market higher. Industrial and Commercial Bank of China rose 2.67%, Agricultural Bank of China gained 1.91%, China Construction Bank added 2.71%, and Bank of China climbed 5.17%.

 

For the full month, the Shanghai Composite gained 4.02%, while the Shenzhen Component rose 3.21%.

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