Chinese Stocks Likely to Continue Bearish Outlook
Sentiment may continue to be bearish in the Chinese market after the Dragon Boat Festival long weekend. The Shanghai Composite index lost 1.39 percent to a near three month low of 2260.8 on Thursday as weak HSBC flash PMI data reinforced slowdown worries. The benchmark fell 0.43 percent for the week.
Shanghai's housing bureau confirms that it has disallowed non-residents from backdating social security payments to qualify for home purchases, this follows four government ministries' four denials of easing of property curbs in ten days. The central government wants to be seen as not backing down on the restrictions so as to quell speculation.
Chinese and US firms have signed deals worth $3.4 Billion in various industries — as part of the sino-US urban economic cooperation conference held in Nanjing over the weekend.
Stocks to watch
- WATER RESOURCES RELATED STOCKS — The state planning agency has approved the 12th five year plan for water resources. China aims to more than double water infrastructure spending to 1.8 trillion yuan from the previous five years, with priority given for rural water projects.
- INSURERS' SHARES — The insurance regulatory commission has issued regulations to encourage more private investment in the insurance industry. The maximum shareholding allowed by private investors in insurers will be lifted to above 20 percent.
—By Cheng Lei, CNBC Asia Pacific