China stocks may consolidate further on Wednesday before a decisive breakthrough. The Shanghai Composite closed 0.13 percent lower on Tuesday at 2448.88 on weakness in financials, turnover was lighter than Monday.
Market Factors
Wang Lin, head of funds at China Securities Regulatory Commission says the second batch of Renminbi Qualified Institutional Investors products will mainly be exchange-traded funds investing in large blue-chips.
A fuel price cut had been rumored to come midnight Tuesday, but the Shanghai Securities News website says the planning agency meeting that was said to precede the cut was instead about power tariffs.
Many provinces and cities in China are holding hearings this week to discuss the details of a progressive power tariff plan.
Stocks to watch:
Huafeng Spandex
Various Chinese news websites report the textiles firm's parent has been approved to become China's first village bank, as part of the recent Wenzhou SME financing reforms.
Property Developers
Housing bureau at eastern city of Yangzhou defends its property incentive scheme (effective July 1), saying that awarding cash (0.4 percent to 0.6 percent of housing value) to buyers of ready-for-use homes does not contradict Beijing's property curbs. This follows a number of cities' moves to make it easier for buyers using Public Housing Fund home loans. Analysts say it's a sign of the funding pressure local governments are under and the lengths they will go to to stimulate property sales.