The Shanghai Composite Index may test the key 1300 level again today, but further gains will be limited by profit-taking pressure.
The strong performance of auto shares helped stabilize sentiment, but many sectors, such as metals and properties, are under profit-taking pressure.
More selling is possible in the future, because of the changes in the demand-supply situation.
Many shares appear to be a bit expensive after recent strong gains and investors are starting to cash out.
The moves raised hopes that fresh money will flow into the market and helped boost sentiment.
