China stocks inch higher as strong GDP offsets weak AI mood

SHANGHAI, Oct 19 (Reuters) - China stocks edged up on Monday, as an upbeat third-quarter GDP reading countered soft sentiment around AI supply chain names.

** China's blue-chip CSI300 Index .CSI300 edged up 0.1% by the lunch break, while the Shanghai Composite Index .SSEC gained 0.2%. The Hong Kong market is closed for a local holiday and will resume trading on Tuesday.

** The economy expanded 4.5% year-on-year in the third quarter, topping forecasts and reducing the urgency for Beijing to step up support to meet its annual growth target. Retail sales for September also accelerated.

** "Despite the data surprise in September, the performance in the first nine months of 2026 still intensified domestic and global concerns about China's imbalance," ANZ analysts said in a note.

** "Fiscal support remains crucial as policy constraints limit monetary easing amid balance-sheet recession pressures," they said.

** The tech-focused STAR50 Index .STAR50 was down 1.7%, as sentiment around the AI chip supply chain remained weak.

** Traditional sectors such as financials .CSI300FS and liquor .CSI399997 led gains onshore, up 0.8% and 1.4%, respectively.

** Unitree shares 688836.SS surged more than 10%, rebounding from a record low hit last week, while memory chipmaker CXMT 688825.SS fell 7.6%.

** The CSI300 Index lost 3.4% last week, the worst showing since mid-July, down for 10 straight weeks.

** Investors are turning their attention to a key financial forum in Beijing this afternoon, where China's securities regulator is due to speak.