China stocks edge higher as cabinet pledges support before holiday

  • China’s State Council pledged incremental measures targeting property, employment and household income.
  • China’s official September PMI is expected to rise to 50.1 from 49.8.
  • Onshore trading resumes October 8 after the National Day holiday begins Thursday.

China’s stocks edged higher on Tuesday after a State Council meeting chaired by Premier Li Qiang pledged a package of pragmatic and effective incremental measures to address rising economic strains, including steps to stabilize the property market, promote employment and increase income. Thin trading ahead of the week-long National Day holiday limited gains: the Shanghai Composite rose 0.1% by midday, the CSI300 was roughly flat and Hong Kong’s Hang Seng fell 0.6%. Property developers led mainland gains, with Vanke up nearly 8%. China’s official manufacturing PMI is expected to rise to 50.1 in September from 49.8 in August, according to a Reuters poll of 29 economists, while the private RatingDog PMI is forecast at 51.6 from 51.5. The data are due Wednesday, with 50 separating expansion from contraction. The anticipated improvement followed weather-related disruptions from heavy rain and typhoons in August, although weak retail sales, investment and household spending continue to point to soft domestic demand. Officials have said the economy remains on track to meet its 4.5% to 5% annual growth target, supported by advanced manufacturing and exports. Goldman Sachs expects targeted fiscal and credit easing, including at least 500 billion yuan ($74.57 billion) in additional local-government bond quotas, but no policy-rate cuts for the remainder of 2026. Hong Kong technology shares declined, while the Hang Seng Innovative Drug Index gained 3.3%. Onshore trading will resume on October 8 after the holiday begins Thursday.

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