China Stocks to Trade Sideways After Rebound

China stocks are expected to trade sideways after yesterday's rebound. The Shanghai Composite gained 1.39 percent to end at 2378.89 amid higher turnover.

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A lone Chinese investor talks on the phone as he monitors his stock prices at a security firm in Hefei, east China's Anhui province.

Market Factors

State-owned firms' profits declined in the January-April period. The worst performers were from the resources, construction, and transportation industries.

Zhang Xiaohong, a market regulation official at the Ministry of Housing and Construction, said a decline in property prices will be the theme of the market in the short term.

Regulators will review a record nine initial public offering applications on Friday. The faster pace of IPOs coming to market — the pipeline has 700 companies — is likely to weigh on sentiment.

Stocks to Watch

Property Stocks - China's bureau of statistics is due to release the 70 cities' housing prices data at 9:30 a.m. SGP/HK time, when the Chinese market opens. March was the first month in which the average price had shown a year on year drop.

—By Cheng Lei, CNBC Asia Pacific