By Zheng Buchun

Trading volume of China's A-shares moved up Thursday with Shanghai Composite gained 0.51% to 3183.18 points, surpassing the height on January 10. Other share indexes also saw similar trends.

Weighted stocks have been doing well for several months, pushing the Shanghai Composite to stay high. The market is also poised to take advantage of the forthcoming national conferences. Small and medium board showed good performance as well despite a short-term stagnant near the closing bell yesterday.

The mount of loans to financial institutions might be significant in January. Though it is targeted for real economy, somehow the money will find its way into the stock market. The private placement agents may struggle to pool money as such as they can if they cannot tell the future trend.

In addition, I think the central bank of China is likely to lower its revere ratio. If institutional stockholders have also foreseen the trend, the trading volume of A-shares is highly likely to expand in advance. As the dollar continues to charge lower against RMB, I think the time is right.

In general, the volume growth of yesterday is moderate and within a proper range. But it's unclear whether the growth will continue. Investors should wait for more market indicators, such as the number of IPOs, Sino-America trade relations, and RMB exchange rates before venturing your investment. For those with an underweight portfolio, you may increase your investment. Otherwise, it is better to stay the course.

(Zheng Buchun is NBD's columnist)

Email: tanyuhan@nbd.com.cn