By Zheng Buchun

On the first few days of last week, stocks managed to press ahead but retreated from last Wednesday. Shanghai Composite closed at 3202.08 points with a weekly growth of 0.17% despite a 0.85% loss last Friday. While Shenzhen main board, small and medium enterprise board, and ChiNext all posted slight losses.

Traders received several major economic news items recently. Specifically, the central bank injected more money into the market through reverse repos. It may somehow go into the stock market and help boost share indexes. In addition, almost no new stocks have been issued last week. However, more will be introduced this week, which may help explain why sub-new stocks lost strength on the latter days of last week. China relaxed curbs on stock-index futures trading last Friday but no strong stock performance was shown, indicating investors dare not to blindly follow the trend.

In general, the news to relax trading rules on stock index futures will hardly benefit the stock market to any significant degree. Stocks have been on the rise for quite a few days, investors should be cautious against major fluctuations. So downsize your positions if your portfolio is overweight.

(Zheng Buchun is NBD's columnist)

Email: tanyuhan@nbd.com.cn