By Zheng Buchun

A-shares moved up Monday with Shanghai Composite closed 0.63% higher at 3216.84 points. But trading volume shrank slightly. Other share indexes have also seen similar trend. In general, sub-new stocks skyrocketed yesterday. And other stocks held by investors also rose across the broad, especially small-cap banking shares, and stocks of companies that benefiting from the Belt and Road Initiative and inflations.

The rising trend of sub-new stocks is largely due to the slowdown of IPOs in the coming two weeks because it takes time to prepare all fiscal reports of 2016. But in the long run, sub-new stocks are trending downward as Chinese regulators are determined to pace up IPOs.

The amount of money supply, loans, and CPI of last month are likely to be made public this week, which is set to influence the market liquidity. In addition, Yellen, Chair of Federal Reserve is going to give speeches at the US congress during February 14-15. China may adopt tighter monetary policies if she is determined to hike Fed's rates. If not, monetary policies might be much easier.

Investors should follow the market trend but refrain from buying stocks in heavy volume. In terms of specific ones, I recommend medium- and small-caps because the market is not as liquid as before. Sub-new stocks are also good choices.

(Zheng Buchun is NBD's columnist)

Email: tanyuhan@nbd.com.cn