Chinese stocks rose on Monday, bouncing back from earlier losses despite new signs of economic weakness. The Shanghai Composite increased by 0.86% to 3,986.3, and the Shenzhen Component went up by 0.44% to 14,015.
August PMI data indicated ongoing economic pressure, with the Composite PMI slightly improving to 49.5 from 49.3 in July but remaining below 50, meaning contraction in both manufacturing and services.
The government announced measures to assist the struggling property sector, such as issuing mortgages only after project completion. Banking stocks boosted the market, with several major banks showing significant gains. For the month, the Shanghai Composite rose 4.02%, and the Shenzhen Component increased 3.21%.