'Big picture' plan needed to tackle economic woes

Analysts say the Chinese stock market is in a wait-and-see mode - when investors are uncertain about the economy's general direction, which may reflect uncertainty among policymakers.

This should explain the domestic A-share market's plunge to a one-year low on Monday, and fears that the Shanghai Composite Index may fall still lower before an upward trend can be assured.

For the first time, Beijing has voiced concerns about over-tightening after using a club to beat down the country's soaring property prices. Premier Wen Jiabao recently warned of the risk of negative policy consequences while admitting that the government is faced by "many dilemmas" under "extremely complex" conditions.