Reforms boost investor sentiment

China's financial authority's emphasis on pushing market-based reforms to draw more long-term investors into the capital market and to enhance the quality of listed companies has given a boost to investor sentiment and will likely help extend the rebound of the A-share market, analysts said.

Despite the unclear prospects of the ongoing trade conflict with the United States and a slower domestic economic growth, market sentiment has been improving as A-share investors have been able to digest negative external shocks such as China-US trade tension escalation and are now shifting their attention to domestic policies to guide their future investment decisions.

The expectations of more policy stimulus to shore up growth and more favorable measures to boost the role of the capital market in serving the economy will be among the key factors to determine the trend of the A-share market for the remainder of this year, analysts said. The benchmark Shanghai Composite Index has rebounded by 6.5 percent since early August.