China's economy and China stocks

Over the weekend, the Chinese government released official data on the country's economic growth for the 1st quarter of 2006. GDP growth stands at 10.2% which was higher than the 9.2% figure for the year 2005. Domestic demand could be behind the economic expansion for the 1st quarter of 2006 as celebrations abound during the festive Lunar New Year. This has shown that China's economy is well on track for growth and that could be the main reason behind the rally of China's stock for the last week. Expect China-based counters to continue in the limelight for the week or next.

Meanwhile, analysts are looking at two Chinese companies - Landwind Medical and China Hongxing. CIMB has a price target of S$0.80 for Landwind and S$1.65 for China Hongxing, based on their expansion in China. OCBC has a price target of S$0.70 for Landwind Medical.