Investors banking on key data

CPI figures as well as inflation numbers and corporate borrowing will be scrutinized

Apart from uncertainties to be brought by authorities lifting a freeze on initial public offerings announced on Friday, a raft of economic data to be released this week will also hold sway over the mainland stock markets.

The consumer price index, or CPI, for October will be released, while the government is expected to announce trade figures as well as inflation numbers and corporate borrowing.

Market and economic experts are expecting data to show that many sectors have continued to recover from September after coping with the stock market slump, the slowdown in the global economy and the decision to realign the yuan against the dollar.

"The momentum is back and investors are looking forward to a fourth quarter that performs better than the third one," Guotai Junan Securities Co Ltd, one of the largest investment banks in China, said in a report.

Smaller investors will focus on consumption-fueled sectors, such as healthcare, retail and environ-mental protection, according to Guotai Junan Securities.

In the past few months, the markets have stabilized following the government's decision to shore up equities. This included banning major stockholders from selling shares, curbing short selling and directing State funds to purchase equities.

While government-owned funds still influence the market, evidence of heavy intervention has dwindled and investor confidence has returned.

During the last trading week of October, up to 337,000 new investors entered the market, figures released by the China Securities Depository and Clearing Company Ltd showed.

Already there is expectation that the government will roll out new policies to boost the economy following the recent Fifth Plenum of the Communist Party of China, during which the 13th Five Year Plan (2016-20) was drafted.

More detailed measures are likely to be introduced in the next few months, including expected reforms in the financial sector.

"China's Fifth Plenum announcements mark a continuation, rather than a break, with the policies of the last few years," a research note from Moody's Investors Services said.

"The key points appear to be in line with authorities' efforts toward economic rebalancing. The general objective of rebalancing and reform is applied to various economic and social areas from the financial sector to the environment to family (planning) policy," the report added.

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