By Zheng Buchun

A-shares were doing well last week despite a fall last Thursday. Shanghai composite rose to 3253.43 points with a weekly growth of 1.60%, which is fairly close to the highest point of last November. Shenzhen Composite even soared to 2000.38 points with a weekly growth of 2.84%。

The most important news traders received in recent days is "China' move to tighten trading rules of secondary offerings". Before that, the amount of money flowed to secondary offerings was far greater than that flowed to IPOs. Last week, IPOs was issued at a normal speed, which helped drive up stock prices. But Liu Shiyu, Chairman of China Securities Regulatory Commission said last Saturday, the market heals itself in a better way than imagined and implied now it is time to issue more IPOs.

China is moving towards stricter regulations on the stock market. Investors should avoid holding stocks that are under strict scrutiny, such as those mainly held by insurance funds. But regulations may ease after insurance funds find more appropriate ways to go into the stock market. In the long run, it will help fuel China's economy.

Stocks are likely to fall in the following days. You'd better to lower your positions so as to keep what you have earned last week. If share indexes post slight falls, the losses are completely bearable. If on the contrary, stocks plunge, investors with light positions can snap up some cheap beats instead. In my opinion, opportunities are still there as the fifth sessions of the 12th National People's Congress (NPC) and the 12th National Committee of the Chinese People's Political Consultative Conference (CPPCC) are coming soon.

(Zheng Buchun is NBD's columnist)

Email: tanyuhan@nbd.com.cn