China stocks inch higher as strong GDP offsets weak AI mood

According to Business Recorder, China's stocks edged higher on Monday as a third-quarter GDP reading that beat forecasts offset weak sentiment around AI supply chain names. The blue-chip CSI300 gauge was up 0.1% at the midday break, while the Shanghai Composite added 0.2%. Hong Kong markets are shut today for a local holiday and return on Tuesday.

The economy grew 4.5% year on year in the third quarter, beating forecasts and easing pressure on Beijing to boost support for its annual growth target. Retail sales also picked up pace in September. ANZ analysts said in a note that the nine-month result still deepened concerns at home and abroad about China's imbalances.

Technology shares lagged, with the STAR50 Index sliding 1.7% amid continued pressure on AI chip suppliers, while financial stocks and liquor makers led onshore gains by 0.8% and 1.4% respectively. Unitree climbed over 10% and recovered from last week's record low, while memory chipmaker CXMT lost 7.6%. The CSI300 shed 3.4% last week, its weakest showing since mid-July and a 10th straight weekly loss. Attention now shifts to a Beijing financial forum later today, where the securities regulator is set to speak.