The Shanghai Composite rose 1.22% to close at 3,912, while the Shenzhen Component gained 1.73% to 13,119 on Wednesday, rebounding from the previous session’s losses as persistent deflationary pressures fueled bets on fresh stimulus. Both consumer and producer prices in China fell in September, underscoring weak domestic demand and lingering trade headwinds. Meanwhile, Premier Li Qiang reiterated calls to boost consumption and curb unfair market practices. While the PBoC is expected to keep rates steady this month, signs of a slowing economy have reinforced expectations for policy easing later this year. On the trade front, investors continued to weigh escalating US-China tensions ahead of an anticipated Trump-Xi meeting later this month. Technology and clean energy shares led gains, with Victory Giant, Luxshare Precision, and Sungrow Power rising between 5.8% and 8.3%.
