Monetary Easing Hopes May Support China Stocks

China stocks may trade sideways on Friday as concerns about May PMI data (9 a.m. Hong Kong time) could be offset by hopes of monetary easing.

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The benchmark Shanghai Composite lost 0.52 percent to 2372.23 on Thursday, ending the month down 1 percent.

Market Factors:

The securities regulatory commission promises to cut red tape by 40 percent this year as part of its drive to make the market fairer and more efficient.

Stocks to Watch:

Xinjiang-Based Stocks - Vice premier Li Keqiang says at a meeting on supporting Xinjiang that the autonomous region is critical to China's bid to lift domestic consumption.

Nuclear Power Stocks - Chinese cabinet has approved the 12th five-year plan for nuclear safety, this may pave the way for Beijing to restart approving nuclear projects.

Tollway Operators - Guangdong will unify tollway fees that may reduce tollway operators' 2012 profits by 9 percent to 15 percent.

Zinjin Mining - The miner says it will buy Australian gold producer Norton Gold Fields for 1.1 billion yuan ($173.3 million).

—By Cheng Lei, CNBC Asia Pacific