By Zheng Buchun

A-shares rebound slightly last week with Shanghai Composite up 0.33% but Shenzhen Composite down 1.83%. Share indexes for SMEs and growth enterprises also moved in similar way. But the slight rebound cannot reverse the falling trend on the whole.

Recently, China's hot IPO market gets hotter and worried many investors because faster approvals for IPOs increases the supply of equity in the market, putting downward pressure on stock prices. In addition, the Chinese stock market remains tight during the Spring Festival. They are all important contributors to the falling trend.

I think A-shares still get chances to rise higher only if Donald Trump will not start large-scale trade wars against China. From his previous remarks, we know that Trump think the US dollar is "too strong and is killing them". If he allows US dollars to depreciate after taking office, the pressure on RMB will be eased and more monitory policies can be used.

After the Spring Festival, A-shares may see structural opportunities but still found difficult to experience a major rebound. Investors can build some long positions during the Spring Festival. In terms of which stock to buy, you have to carefully study annual reports of each company. In general, I think blue chips and secondary blue chips would be less risky. You can also hold some sub-new stocks if you like. But remember don't hold it too long.

(Zheng Buchun is NBD's columnist)

Email: tanyuhan@nbd.com.cn