China Stocks Gain After Inflation Data
2026-01-09 02:41
By
Jam Kaimo Samonte
1 min. read
The Shanghai Composite rose 0.92% to close at 4,120 while the Shenzhen Component gained 1.15% to 14,120 on Friday, with both benchmarks hitting fresh multi-year highs as investors digested the latest inflation figures in China.
Consumer price inflation in December rose at its fastest pace in nearly three years, fueled mainly by higher food costs, which are concealing underlying deflationary pressures.
Meanwhile, producer prices fell for the 39th consecutive month, though the decline was the smallest since August 2024.
Earlier this week, the People’s Bank of China pledged to lower the reserve requirement ratio and cut key policy rates to maintain ample liquidity and supportive monetary conditions.
Defense and AI-linked stocks led the gains, with BlueFocus Intelligent up +14.1%, Zhejiang Sanhua +5.1%, China Spacesat +4%, China Aerospace +10%, and Addsino Co +2.6%.
Over the week, the Shanghai and Shenzhen indexes advanced 3.82% and 4.4%, respectively.