By Zheng Buchun

A share fluctuated slightly on Wednesday with Shanghai Composite down 0.4% to 3102.24 points and Shenzhen Composit down 0.37% to 1972.35.

The reasons for the tight market are complicated. Internationally, Federal Reserve projected 3 interest hikes in 2017. Domestically, raising inflation, soaring houce prices, and tax breaks all contribute to the shortage of money supply.

I personally think that central bank of China should lower the cash reserve ratio instead of expanding reserve repos, MLF and SLF because it is cost-effective, more direct and easier to implement.

Next year, China may follow America's step to raise interest rates. Major rebound is unlikely in the following days. To minimize risks, investors should cut your overweight positions and wait for your time. 

(Zheng Buchun is NBD's columnist)