On Monday, China's stock markets closed slightly higher, with the Shanghai Composite rising 0.16% to 4,086 and the Shenzhen Component gaining 0.37% to 14,996. This upward trend was fueled by robust economic data, particularly a 15.5% year-on-year increase in industrial profits for the first quarter of 2026. This growth indicates a slight improvement from earlier months and comes despite ongoing concerns about the Middle East conflict, which poses risks to global trade. Additionally, producer prices are showing signs of recovery after a prolonged decline, which is beneficial for industrial companies. The industrial sector remains a key driver of China's economic growth post-pandemic, largely supported by strong exports. Among notable stock movements, Shannon Semiconductor saw a 4.6% rise in shares following strong first-quarter profits linked to high demand for AI-related products. Conversely, Kweichow Moutai experienced a 3.79% decline due to weaker domestic demand impacting its sales and pricing.