It's time for investors to unload over-valued chips to reap gains. Concerns of overcapacity still cloud some industries.
There's consensus the market will keep an upside trend in the long run. The focus is how quickly the key index can top 1,300 and after that it may head north more easily.
More detailed rules and measures are needed to beef up corporate governance. Now investors are eager to know when new share sales can resume and whether big-cap companies traded overseas will come back.
Under the current scenario, a round of profit-taking usually comes shortly after bargain hunting. Without any concrete regulatory stimulus and rosy corporate earnings reports, the market faces a downward pressure after gaining more than 10 percent this year.
Here comes a correction, which may drag on through next week as more investors are expected to sell. The index will move within a narrow range but probably gain support at the 1,300 line.
The move has overcome the last technical hurdle preventing overseas institutions from making strategic investments in mainland-listed companies. It has provided a channel for foreign investors to sell down shares in the markets after a lockup period.
