Putting all bets on the blue chips

After a dispiriting period of weak performance with a very light turnover, the bets are on blue chip shares on the Chinese stock market to lead a new round of post-holiday rallying, analysts said.

"The direction of the index will ultimately depend on the performance of blue chips and heavyweight stocks. Only a strong rally of blue chips supported by heavy capital inflow will drive up the general market," said Zhang Qi, an analyst at Haitong Securities.

Among the blue chips, bank shares are expected to be top performers as the Chinese banking industry is likely to outpace its peers in Asia to deliver the highest returns in the next few years.