ALTHOUGH China's stock market regulator announced it would seek to stabilize the market in response to its recent slump, analysts said sluggishness may continue this week amid an expected thin turnover.
The China Securities Regulatory Commission said last Friday it would work to ensure the market develop in a healthy and stable manner.
The benchmark Shanghai Composite Index fell 5.95 percent to finish at 2,450.61 last week, 60 percent off its record peak hit last October. The barometer closed at a 19-month low last Thursday, before inching up 0.56 percent the next day.
The CSRC reiterated it would tighten supervision on sales of previously nontradable shares that are now allowed to trade because of the expiry of their lockup periods. It would also act cautiously in approving new share issues to avoid an oversupply in the market.
The move may benefit the shares but analysts said the market may not be able to get rid of weak sentiment and low turnover amid worries of a slowdown in economic growth and an influx of new shares.
"In the event no concrete policies are launched to help the market, it would be hard for the index to rise strongly," said Huatai Securities analyst Zhang Li, who expects the gauge to move between 2,000 and 2,600 this week.
Shenyin Wanguo Securities sees the index between 2,450 and 2,650.