By Zheng Buchun

A-shares fell broadly Monday with Shanghai Composite plunged 0.76% to 3228.66 points. Shenzhen main board, small and medium board and ChiNext closed 0.51%, 0.61% and 0.55% lower respectively.

From a sector view, stocks held by insurance funds were hit hard yesterday as China continues to tighten regulations on insurance companies. White wine stocks and cement stocks also lost strength. But as the fifth sessions of the 12th NPC and the 12th National Committee of the CPPCC are around the corner, green stocks pressed ahead. Steel stocks were also driven up with Baosteel's resumption of stock trading and the good performance of ferrous metal futures.

Based on the K-curves of Shanghai Composite Index, an ascending channel was in shape starting from 3044 points. But the index has hit the breakout point of the lower line. So far, however, it is still too early to tell a downward trend. If it cannot manage to reverse the decline but fall further instead in the following days, it may signal a descending trend.

Investors with heavyweight portfolios can consider cutting some of your positions. While for those with light portfolios, you don't need to worry too much because there is little room for stocks to decline. You can even consider snapping up some cheap beats if stocks fall further. Usually, the impact of big events may undermine the role of trading skills. So during the forthcoming "two sessions", the stock market is very likely to remain stable as before.

(Zheng Buchun is NBD's columnist)

Email: tanyuhan@nbd.com.cn