Will stock market brace for more falls in 2014?

2014: a year or windfall or pitfall?

Investors have reason to frown over and take a cautious stance on the bearish Chinese stock market, which was among the world's worst performers last year.

While the Chinese economy grew 7.7 percent in the first three quarters - whole-year data due next week, the Shanghai Composite Index made an annual loss of 6.75 percent.

Chinese stocks extended losses in the first week of the new year with the Shanghai index down 3.35 percent.

IPO resumption has been blamed for the market's poor performance in the past week as investors worry of a share glut when liquidity is generally tight. The market maneuvers of Aosaikang dampened investors' enthusiasm.

Despite all, China's stock market will fare better in 2014, according to a recent survey published by financial news portal Hexun.com. The respondents included 100 leading economists and 22 heads of securities research institutes, according to Hexun.

The surveyed economists are optimistic, with 71 of them eying for a market high at the range of 2,300 and 3,000 points.

Other analysts played down that hope.

Citing recent purchasing managers' index data and pressure from IPO, Zhang Weiling, an economist at Western Securities, said the stock market is unlikely to see any big change in the short term.

To put the stock market on a sound footing, regulators shall appease the investors' discontent through improved IPO policies and seek to bring more money into the anemic market, said Qin Hong, an economist with Jinbailin Global Investment Consultation Co Ltd.

Chinese shares fell slightly on Monday with the benchmark Shanghai Composite Index down 0.19 percent, or 3.73 points, to finish at 2,009.56.