Shanghai's key stock index may continue to correct despite undergoing a small rebound next week, analysts said.
The benchmark Shanghai Composite Index added just 0.03 percent last week and closed at 2,861.61 points last Friday, after slumping 6.74 percent on August 31.
The market is expected to remain stable this week although the initial public offering by Metallurgical Corp of China may shake things up a little, Zhang Gang, an analyst at Xinan Securities, wrote in a research report.
The Beijing-based company will sell no more than 3.5 billion shares in Shanghai on Wednesday to raise a total of 16.8 billion yuan for new projects and to repay loans.
"Major economic data set to be unveiled on Friday may also push up the index," Zhang added.
Shenyin and Wanguo Securities wrote that investors are still cautious over the market until there is clear sign of an economic recovery.