By Zheng Buchun

Last week, Shanghai Composite was up 0.54% to 3171.24 points and Shenzhen Composite up 0.30% to 1994.15. In general, defense stocks gained strength, while sub-stocks were relatively weak.

The A-share market will continue to fluctuate later. Due to market uncertainties ahead, big buy and big sales are unlikely in the near term.

China is very likely to follow Fed's steps this year but chain reactions in the mortgage and exchange market has to be taken into full consideration.

Personally, I think China will step up its reform, keep money tight and allow yuan to depreciate a little bit so as to minimize the impact of Fed's interest hikes. Such an investment environment may bring more chances to investors.

Stocks of enterprises that are going through hybrid ownership reform are cases in point. If RMB continue to depreciate, it may do good to concept stocks which has pricing power, such as Kweichow Moutai. The market has already showed some signs which need investors to go deeper.

(Zheng Buchun is NBD's columnist)

Email: tanyuhan@nbd.com.cn