Liu Yu Quotations

Blue chips were sought after yesterday after the recent correction. But you will probably see the index move in a narrow range before any stimulus is launched to bolster the market.

The stipulation indicates the regulator may resume initial public offerings in Shanghai in the first quarter of next year, probably sometime in February after the Spring Festival.

Rosy earnings results spurred the market. But as firms with poor profit figures often unveil their results in late April, the index likely will face downward pressure.

It's natural to see a drop after a long-time rally. The index may further decline in the week as investors trim positions but will probably gain support at the 1,330 level.

The broad market has a good long-term prospect as there is an abundant supply of funds and on China's booming economic growth. But I expect the index may still move in a narrow range now as institutional investors unload some of their positions and buy others.

The market still faces pressure when it heads towards the 1,300 level. It may fluctuate in a narrow range this week, waiting for more stimulus from the regulator.

The market was still gathering momentum on heavy technical buying after a four-year slump. But you will probably see a correction soon as the 1,400 is a tough barrier.