Chinese stocks may trade sideways due to negative impact of global market declines, but analysts remain bullish.
The Shanghai Composite Index finished flat on Monday at 2451.95 due to weakness in large caps, but the startup board Chi-next gained 2.7 percent, while the SME board rose more than 1 percent.
Star fund manager Wang Yawei held a press conference to discuss his sudden departure from China Asset Management, where funds that he managed have outperformed the market for six years in a row. Wang said he is leaving because too many retail investors are blindly buying into stocks that his funds own. Wang also said that he likes blue-chip stocks.
Guo Shuqing, chairman of the China Securities Regulatory Commission, said at the Securities Innovation Summit that the regulatory body will legislate against improper pricing of initial public offerings, such as when brokers receive gifts or favors from listing candidates and in return give higher valuations.
Stocks to Watch:
China's barometer of external demand, the Canton trade fair, wraps up with the first fall in volume in three years. Export-heavy provinces such as Guangdong and Zhejiang are reportedly working on rescue packages, including financing aid to exporters in order to reach the annual trade growth target of 10 percent. Analysts expect April trade figures, which will be released on Thursday, to show tepid export growth.
The electronics and appliances manufacturer said April sales of LCD TVs jumped 81.65 percent, but sales of mobile phones fell 13.62 percent
A number of brokers post large double-digit slides in April profit, even as their shares log double digit increases in recent months.