
The Shanghai Composite fell 0.3% to a more than one-month low of 3,875 on Tuesday, while the Shenzhen Component rose 0.3%, as a mixed batch of economic data reinforced concerns that China’s economic recovery remains fragile. Fixed-asset investment declined 7.2% in the January–August period, marking the steepest drop for the period since January–April 2020. Retail sales also slowed to a three-month low of 0.4% year-on-year in August. The unemployment rate edged up to a five-month high of 5.3% from July’s 5.2%. Providing some relief, the house price index fell 3% yoy in August, marking the softest drop since December 2025, while industrial output climbed to 5.2% from 4.5% in July. China’s growth risks undershooting the government’s 4.5%-5.0% annual target for a second consecutive quarter, increasing pressure for additional stimulus. Notable laggards included CATL (-1.4%), Zhongji Innolight (-1.3%), and Suzhou TFC Optical Communication (-2.3%).






