The Shanghai Composite rose 0.16% to 4,086, while the Shenzhen Component gained 0.37% to 14,996.

Industrial profits in China increased by 15.5% in the first quarter of 2026 compared to a year earlier, improving slightly from earlier months. This growth came despite ongoing concerns about the Middle East conflict, which could impact global trade and supply chains.

There was also positive news on prices, as producer prices showed signs of recovery after more than three years of decline, helping support industrial companies.

China's industrial sector continues to play a major role in economic growth after the pandemic, driven by strong exports.

Among companies, Shannon Semiconductor shares rose 4.6% after reporting strong first-quarter profits due to high demand for AI-related products. Meanwhile, Kweichow Moutai fell 3.79% as weaker domestic demand affected its sales and pricing.