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Monetary Easing Hopes May Support China Stocks

Cheng Lei|Reporter, CNBC Asia Pacific
Thursday, 31 May 2012 | 10:36 AM ET

China stocks may trade sideways on Friday as concerns about May PMI data (9 a.m. Hong Kong time) could be offset by hopes of monetary easing.

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The benchmark Shanghai Composite lost 0.52 percent to 2372.23 on Thursday, ending the month down 1 percent.

Market Factors:

The securities regulatory commission promises to cut red tape by 40 percent this year as part of its drive to make the market fairer and more efficient.

Stocks to Watch:

Xinjiang-Based Stocks - Vice premier Li Keqiang says at a meeting on supporting Xinjiang that the autonomous region is critical to China's bid to lift domestic consumption.

Nuclear Power Stocks - Chinese cabinet has approved the 12th five-year plan for nuclear safety, this may pave the way for Beijing to restart approving nuclear projects.

Tollway Operators - Guangdong will unify tollway fees that may reduce tollway operators' 2012 profits by 9 percent to 15 percent.

Zinjin Mining - The miner says it will buy Australian gold producer Norton Gold Fields for 1.1 billion yuan ($173.3 million).

—By Cheng Lei, CNBC Asia Pacific