Share market needs correction

China shares had a rollercoaster ride in the first two days of the Year of the Pig.

Following Monday's rally that broke the significant barrier of 3,000, shares nosedived 268 points yesterday.

Yet in the long term, a correction could only be good for the exchange. To ensure sustained growth, the market needs a drop as deep as 400 points, as it has been overheating for some time.