By Zheng Buchun

A-shares fell broadly Tuesday with Shanghai Composite up only 0.18% but Shenzhen Composite down notably 0.3%. Share index of SMEs and growth enterprises dropped 0.21% and 1.00%. In general, weighted stocks such as China National Petroleum Corporation (CNPC) rose slightly. But slumping LeEco dragged down the share prices of growth enterprises and newly listed companies.

Yesterday, CNPC rose 2.82% unexpectedly but with low trading volume, indicating that shares held by large institutions are increasing. Sometimes large-cap stocks did exceptionally well, such as Wanke A and China Construction Engineering Corporation, which may have something to do with the weak bond and property market, and hybrid ownership reforms.

A few days ago, I said the sort-term positions of newly-listed stocks have tumbled to their lowest level. But today I want to say that mid-term positions may tumble further. I'd like to remind investors that newly-listed stocks are risky. Once failed, they may turn out nightmares for you.

In terms of mid-term positions, liquidity may remain tight for a long time, but structural opportunities are still there. I think secondary blue chips and SMEs going through reforms have better chances to offer high returns. During the Spring Festival, investors should pay attention to the international stock market and US policies as well.

(Zheng Buchun is NBD's columnist)

Email: tanyuhan@nbd.com.cn