Hopes of extended rally rise on Party meet

Bullish investors are expecting the Fifth Plenum, a key meeting of the Chinese Communist Party to be held this week, will continue to fuel the stock rally, but some less optimistic traders worry that the current stock prices already factor in the likelihood of a policy catalyst, and might face rising selling pressure.

Mixed investor sentiments were in evidence in the volatile trading of the past week as the benchmark Shanghai Composite Index swung sharply between losses and gains.

"We expect the rally to continue but gaining easy profits and picking right stocks are getting increasingly difficult as market volatility is on the rise," said Zhang Yidong, a strategist at Industrial Securities Co.