Chinese stocks extended their previous session’s gains as expectations for fresh policy support strengthened after industrial profits rose 17.6% year-on-year to CNY 4.58 trillion in the first seven months of 2026, slowing from an 18.7% increase in the January–June period. The Shanghai Composite rose 0.1% to 3,916, while the Shenzhen Component gained 0.5% to 13,915. Earlier this month, fixed-asset investment, industrial output and retail sales all undershot market expectations, increasing hopes for additional stimulus. Investors are watching the National People’s Congress Standing Committee meeting, which concludes on August 28, for measures aimed at supporting growth. Technology stocks led the advance, including Cambricon Technologies, Huron Information Technology, Zhongji Innolight and Eoptolink Technology. China Merchants Bank is also issuing a three-year floating-rate note linked to the overnight bond repurchase rate, becoming the first domestic commercial lender to do so after the Export-Import Bank of China issued similar debt as the first policy bank. The move reflects the PBOC’s efforts to make the overnight repo rate the main anchor for short-term funding costs.