Uncertainties 'making stock investors cautious'

Uncertainties about China's economic recovery over the medium and long term are raising caution among investors about the stock market's performance in the second half of this year, UBS Securities AG chief strategist Chen Li said on Thursday.

"The mainstream believes that in the third quarter, we'll see short-term economic stabilization. However, as long as the three long-term economic warning signs persist - a high debt ratio, excess capacity and a property bubble - the market will likely shrug off any short-term economic stabilization," said Chen

Since 2012, Chen said, the A-share market has appeared to be increasingly insensitive to any signs of a short-term economic rebound.