Some experts remain optimistic about the Chinese mainland stock market in the short term on rising expectations that China's stable economy will push share prices higher, according to media reports.
In addition, investors' positive expectations for State-owned enterprises (SOEs) reform will continue to help lift blue chips, according to a report by cnstock.com on Saturday.
SOE reforms aim to optimize the industries and enhance the national capital allocation, which will ultimately build world-class enterprises in China, the report said. So investors should pay close attention to these stocks, which could perform better in the future, the report said.
The market still faces a slew of uncertainties, such as whether real estate investment will decline and whether SOE reforms can move forward, according to the report.
Currently, the market remains short of liquidity. If mainland stocks can attract more funds in 2017, major indexes could go up, the report said.
Mainland stocks fell on Friday, dragged lower by brokerage and insurance shares. Local media reported that Chinese regulators planned to tighten supervision over online insurance products, as well as brokerages' alternative investment business, aiming to reduce financial risks.
The CSI 300 index fell 0.84 percent, to 3,307.60 points on Friday, down 1.15 percent for the week.
The Shanghai Composite Index lost 0.94 percent to 3,110.15 points on Friday, down 0.41 percent for the week, while the Shenzhen Component Index fell 1.04 percent to 10,199.86 points on Friday, down 1.31 percent for the week.
The ChiNext Index, which tracks China's NASDAQ-style board for high-tech and emerging start-ups, slumped 1.09 percent to 1,964.54 points on Friday, down 1.68 percent for the week.
The China Securities Regulatory Commission (CSRC) approved eight IPO applications last week, which are expected to raise up to 7.2 billion yuan ($1 billion), the Xinhua News Agency reported on Saturday.
