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Bumpy ride for stocks

THE Chinese mainland's key stock market is likely to hit turbulence this week, analysts said.

"The index may experience wide fluctuations after market expectations fizzled for a more forceful stimulus package last week. But the market is still on track to move upward," TX Investment Consulting Co wrote in a research note.

Last week, the Shanghai Composite Index gained 5.29 percent to 2,193.01 points, boosted by a midweek surge in speculation of more government measures to support the economy.

Turnover shrank to 540 billion yuan (US$79 billion) from 654 billion yuan in the previous week.

"This rebound still has momentum as more supporting packages are to be unveiled," Guotai Jun'an Securities Co said in a note.

TX Investment Consulting said that blue chips in the financial and property sectors will lead gains, but small and medium-sized companies face downward pressure.

Officials from China Investment Corp said last week that the country's US$200 billion sovereign wealth fund will continue to increase holdings in three state-owned lenders.

"The government is determined to keep economic growth above 8 percent, which indicates China will prevent the economy from worsening. Investors should not be too pessimistic. The index is expected to move between 2,300 and 2,500 points," Hualin Securities Co wrote in a note.


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