China Market Steadies as Data Reassure Investors
Sentiment is stabilizing in the Chinese market after a batch of economic data showed some positive signs.
The benchmark Shanghai Composite snapped a three day losing streak to close 1.07 percent higher Monday at 2305.86, but turnover remained thin.
The latest set of data on China’s economy released over the weekend suggested authorities’ easing measures are working, with economists pointing to strong internal demand and investments as signs the country is avoiding a sharp slowdown feared by many in the markets.
Chinese banks added a higher-than-expected 793.2 billion yuan ($125 billion) of new loans in May, while money supply growth also picked up. Analysts note the higher increase in longer term loans, indicative of more investment spending thanks to speedier government approval of projects.
Stocks to Watch:
China State Construction Engineering - The country's largest construction and property conglomerate said new construction contracts rose 26 percent in the first five months of the year to 366.4 billion yuan, while its property division's revenues grew 14.6 percent to 43.9 billion yuan.
Cosco Shipping - The A-share listed unit of China's largest shipping firm said freight volume rose 42.8 percent in May to 1.02 million metric tons. Freight volume in the first five months of the year grew 25 percent.
Yicheng - Property developer Yicheng says its subsidiary will buy U.S. wind power company Linax Tech for $38.4 million, the deal is expected to contribute positive cashflow to Yicheng's earnings.
—By Cheng Lei, CNBC Asia Pacific; CNBC’s Jean Chua contributed to this article.