FX.co ★ China Stocks Extend Gains

The Shanghai Composite inched up 0.1% to 3,916 on Thursday, while the Shenzhen Component gained 0.5% to 13,915, extending the prior session’s advance as expectations for fresh policy support strengthened on the back of the latest industrial profits data. China’s industrial profits rose 17.6% year-on-year to CNY 4.58 trillion in the first seven months of 2026, moderating from an 18.7% increase in the January–June period. Earlier this month, figures for fixed-asset investment, industrial output, and retail sales all fell short of market forecasts, bolstering hopes for additional stimulus. Investors are now watching the National People’s Congress Standing Committee meeting, which concludes on August 28, for potential policy signals aimed at shoring up growth. Technology stocks led the gains, with notable advances in Cambricon Technologies (2.2%), Huron Information Technology (5.1%), Zhongji Innolight (2.5%), and Eoptolink Technology (2.0%).