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China Stocks May Face Resistance at 2,400 Level

Cheng Lei|Reporter, CNBC Asia Pacific
Tuesday, 29 May 2012 | 10:34 AM ET

China stocks may face resistance at the 2,400 level on Wednesday.

An investor watches the electronic board at a stock exchange hall in Huaibei, China.
ChinaFotoPress | Getty Images
An investor watches the electronic board at a stock exchange hall in Huaibei, China.

The benchmark Shanghai Composite closed higher by 1.20 percent to end at 2389.64 on Tuesday, it was the second day of gains.

Market Factors:

The chorus calling for an asymmetric rate cut is growing; advocates now include investment bank China International Capital Corp. and government think tank State Information Center.

A Xinhua news agency report says there won't be a repeat of the 4 trillion yuan ($502 billion) stimulus package that followed the global financial crisis, the focus this time round would be on "stabilizing growth," rather than "ensuring growth."

Stocks to Watch:

Property Stocks - Property transaction turnover in 54 Chinese cities for May hit a 16-month high, according to Centaline Property Research. Hexun website reports that Hunan province may relax some property curbs to help lift rigid demand for housing.

Pearl River Piano - Shares of the world's largest piano maker and China's best-known instrument brand will debut in Shenzhen Wednesday.

—By Cheng Lei, CNBC Asia Pacific