By Zheng Buchun

A-shares fell slightly across the board Tuesday with Shanghai Composite closed 0.03% higher at 3217.93 points. But share indexes of Shenzhen main board, small and medium board, and ChiNext dropped 0.02%, 0.06%, and 0.24% respectively.

Weak trade prevailed in the morning session of yesterday. But non ferrous metals stocks and stocks of companies benefiting from ownership reform and the Belt and Road Initiative shored up the market in the afternoon. However, the overall market is still not as strong as that of previous days.

Although the number of well-performing stocks grows larger, the trading volume remains low. That means investors are reluctant to chasing high-yielding stocks at the moment, which in turn tightens the market liquidity. In most cases, investors should be careful if increasing prices do not accompany increasing volume.

China's economy is doing well at the beginning of 2017, which will help back the A-share market. But the market will remain stable this year because China aims to maintain economic growth and simultaneously reduce leverage ratio. Therefore, this year will not see major gains and losses. But you can maximize your returns by trading with different time frames.

As the annual plenary sessions of NPC and CPPCC are coming soon, experienced investors should take advantage of the stocks of enterprises with reform expectations and those benefiting from the Belt and Road Initiative. While for those less experienced, you can buy stocks of companies that benefiting from supply-side reform and inflation because they usually shows slight price movements.

(Zheng Buchun is NBD's columnist)

Email: tanyuhan@nbd.com.cn