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China Stocks Set to Drift Ahead of May Data

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Published: Sunday, 3 Jun 2012 | 6:51 PM ET
By: Cheng Lei|Reporter, CNBC Asia Pacific
Mike Clarke | AFP | Getty Images
Day traders at a local brokerage in Hong Kong

The China market may be due for more listless trading ahead of May economic data (due for release Saturday June 9).

The benchmark Shanghai Composite edged up 0.05 percent to 2,373.44 on Friday, ending the week 1.71 percent higher.

Market Factors

Eight ministries including the Ministry of Finance and Ministry of Commerce issued a joint notice that states "China will launch the pilot to let foreign companies list on domestic bourses at the appropriate time", while this may trigger concerns of investors switching to the International Board, analysts point out the absence of the securities regulatory commission's endorsement may mean the International Board is not yet ready.

Stocks to Watch:

Sinohydro Corporation

The firm says it as not received any written cancellation from Iran Water & Power for its $2 billion hydropower project. The statement is in response to reports last week that Tehran had cancelled the contract.

—By Cheng Lei, CNBC Asia Pacific

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The China market may be due for more listless trading ahead of May economic data (due for release Saturday June 9).

   
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