China Investors Look for Signs Economy Is Bottoming
The Chinese market is likely to trade indecisively in the short term, as investors wait for policy catalysts and for signs the Chinese economy has bottomed out.
The benchmark Shanghai Composite fell 0.70 percent Tuesday to end at 2289.79, turnover shrank further from Monday's levels.
Market Factors:
China's state planning agency posted a denial on its website that may dampen hopes of easing property curbs. The agency said the Investor China newspaper report on June 10, which quoted agency officials as saying China's second trump card to prop up economic growth is loosening property curbs, is "fabricated."
Investors have crowded back into property stocks in recent days after housing sales rebounded in May and on hopes of Beijing fine-tuning its property curbs.
Stocks to Watch:
Citic Bank - China's seventh-largest lender by assets has been approved by the banking regulators and the central bank to issue 20 billion yuan ($3.2 billion) of subordinated bonds that will lift its capital adequacy ratio.
Shanghai Guangdian Electric Group - The Chinese power gear maker has signed a deal to develop solar grid-connected inverters products jointly with Nasdaq-listed U.S. firm Advanced Energy Industries.
—By Cheng Lei, CNBC Asia Pacific