By Zheng Buchun

A-shares dropped slightly on Tuesday with Shanghai Composite down 0.3% and Shenzhen composite 0.24%. The trade volume keeps almost the same with that of Monday. Stocks of companies that are going though hybrid ownership reform remain hot.

Resource stocks and bulk commodity features, such as coke and steel, also surged as China will make greater efforts to cut excess capacity.

National Bureau of Statistics of China announced on Tuesday that CPI rose 2.1% and PPI 5.5% month-on-month in December. I think inflation is actually heavier than figures showed. Other indicators, such as money supply and lending will be released today. Investors should keep an eye on it.

Currently, investors are unwilling to plow their money in and still waiting until the market shows clear direction.

From the Shanghai and Shenzhen Composites, we can see that the A-share market is moving sideways. It provides little trading opportunity for short-term investors. For those inexperienced, better step back and wait for more information.

(Zheng Buchun is NBD's columnist)

Email: tanyuhan@nbd.com.cn