The Shanghai Composite Index climbed 0.3% to 3,658 on Monday, while the Shenzhen Component advanced 0.9% to 11,272, extending last week’s gains as investors digested mixed inflation data. China’s annual consumer inflation slowed to 0.7% in October 2026 from September’s three-month high of 0.9%, undershooting market expectations of 0.8% and hitting its lowest level since June.
By contrast, producer prices rose 5.7% year-on-year, up from 5% in September and above the 5.3% consensus forecast, as elevated commodity and energy prices continued to drive up industrial costs. This widening gap between consumer and producer inflation highlights persistent upstream cost pressures alongside subdued domestic demand, suggesting that higher input costs have yet to be passed on to end consumers.
Investors are now looking to trade figures due later today for additional insight into the resilience of external demand. On the corporate front, notable gainers included Cambricon Technologies (up 3%), WuXi AppTec Co. (2.1%), Luxshare Precision Industry (2.1%), and Weichai Power (3%).