China Traders Tread Cautiously Ahead of Greek Elections
The Chinese market may trade cautiously ahead of the weekend Greek elections.
The benchmark Shanghai Composite Index fell 0.99 percent to end at 2295.95 on Thursday.
Market Factors:
The state planning agency says nationwide rollout of the progressive power tariffs scheme will start on July 1. The reforms to power prices which have traditionally been state set are seen as having positive impact for electricity producers, whose shares have rallied in recent sessions on lower coal prices, reduced financing costs due to the rate cut and possible higher tariffs.
The People's Bank of China clarifies reports that it has raised the maximum discount allowed for home mortgage rates to 30 percent, saying the 30 percent discount has been available all along and there has been no change in policy.
Stocks to Watch:
Yili Industrial Group - China's second-largest dairy producer by sales has recalled several batches of baby formula produced between November 2011 and May 2012 for containing higher-than-permitted levels of mercury. Yili was also implicated in China's nationwide baby milk scandal four years ago after tests showed its infant formula contained melamine.
China Railway Group - The infrastructure construction firm has won 14.9 billion yuan ($2.3 billion) of contracts, worth around 3 percent of its 2011 sales.