SHANGHAI'S stock market is likely to stay flat this week after losing 4.7 percent last week on weak sentiment fueled by fears that China's tightening monetary policy might hurt economic growth.

The Shanghai Composite Index dropped 0.6 percent to close at 2,317.28 last Friday, the lowest since March 2009 and the biggest weekly drop since the five days ended May 27.

The National Bureau of Statistics reported last week that China's gross domestic product grew 9.1 percent in the third quarter, the slowest in two years.

Zhang Yidong, chief strategic analyst at Industrial Securities, said: "The index will not see a large rebound as investors are still reluctant to enter the market as macroeconomic policy remains rather tight."

Beyond wider considerations, the market is also under capital pressure from the planned listing of six new stocks in Shanghai and Shenzhen this week.

Yi Xiaobin, an analyst with Galaxy Securities, said: "It will take a while for the overall situation and market sentiment to stabilize."

Yi estimated the index will remain between 2,245 to 2,450 points this week.

Source:shanghaidaily