By Zheng Buchun

Last week, shares were generally traded lower. Shanghai Composite fell slightly to 3246.07 points with a weekly loss of 1.23%, which is not yet an issue. But the latest quick drop of stock prices has heavily overshadowed sentiment at the domestic market.

In spite of tighter regulations, a few banks and insurers still can find ways to use leverages. However, if market liquidity dries up, risks will emerge. Sub-new stocks are likely traded lower today, in response to the warning given by regulators last weekend.

For investors, it might be time to sell some poorly performed sub-new stocks and retain the healthy ones. Generally speaking, a stock that tends to find support as it falls is considered as a "healthy" stock.

From weekly stock charts, A-shares were not doing well. But they still get chances to move up. Sub-new shares will be affected today but it is still early to tell how they will perform at the close. In addition, quite a few of Xiong'an shares are resumed trading today. Their performance will also have a big impact on the overall market trend. Moreover, investors have to pay close attention to the frequency of flash crashes.

(Zheng Buchun is NBD's columnist)

Email: tanyuhan@nbd.com.cn