Choppy Start for Chinese Stocks Amid Market Cooling Measures

Chinese stocks saw modest gains on Monday amid choppy trading, as recent soft economic data and regulatory actions to cool market rallies kept investor sentiment in check. Despite a recovery in major indices, economic growth hit a three-year low, while regulatory moves aimed to stabilize market sentiment continue to unfold.

Monday's trading session saw modest gains in Chinese stocks, with a cautious market responding to recent economic data and regulatory actions aimed at tempering rallies. The Shanghai Composite Index ended 0.3% higher, recovering slightly after a four-day losing spell, while the CSI300 experienced fluctuations.

Economic growth data released indicated a three-year low of 4.5% in the last quarter, reflecting soft domestic demand. 2025's full-year growth met targets, backed by the central bank's measures to potentially cut interest rates and reserve requirements to bolster demand.

With regulatory bodies increasing scrutiny on excessive speculation and adjusting borrowing margins, the market anticipates gradual economic normalization. Notably, the defense and satellite sectors saw gains, while technology and banking experienced declines, impacting broader market indices.

(With inputs from agencies.)