Investors shrug off rise in inflation, poor export data

Stock markets in the Chinese mainland inched up Monday for the second consecutive day of trading despite disappointing export data and inflation reaching a seven-month high in September.

The benchmark Shanghai Composite Index gained 9.63 points or 0.43 percent Monday to close at 2,237.77, the highest since September 12, on turnover of 151.6 billion yuan ($24.81 billion). The Shenzhen Component Index edged up 22.13 points or 0.25 percent to 8,760.10 on turnover of 150.5 billion yuan.

On Monday, the National Bureau of Statistics announced the consumer price index rose to 3.1 percent year-on-year in September due to rising food prices. Exports also dropped 0.3 percent year-on-year last month, customs data showed Saturday.

Following a visit by Chinese Premier Li Keqiang to Thailand over the weekend to promote Chinese railway technology, firms in the railway sector gained sharply Monday with shares in train makers China CNR Corp and CSR Corp surging by the 10 percent daily limit.

Shares in firms linked to the Shanghai Pilot Free Trade Zone have been doing well recently, but they declined Monday. In particular, Shanghai Material Trading Co plummeted by 9.89 percent on the news that the company is being investigated by the China Securities Regulatory Commission for violating industry regulations.

Shares in the property sector fell by around 2.5 percent after the China Securites Journal reported Monday that the government may tighten controls on the property market.

Despite the gloomy economic data, analysts said investors are still optimistic about the country's third-quarter GDP growth data, which is set to be announced Friday, and they hold high expectations for the upcoming Third Plenary Session of the 18th Communist Party of China Central Committee, at which the government will roll out new policies.