Share correction a real possibility

Within the span of a single week, five of the world's leading investment banks - including Citibank, UBS and Goldman Sachs - have reportedly turned bearish on China's A-share markets.

The pessimists say recent run-ups expose onshore equities to risk of a major readjustment. Specifically, Citibank downgraded China's stock market and described share prices as unreasonably high in light of weakening fundamentals.

Time will tell the accuracy of Citibank assessment. Actually, in August 2014, the bank predicted a 9 percent rise in A-shares within 12 months. In fact, the Shanghai Composite Index has risen nearly 50 percent since this forecast.

Nevertheless, concerns about a possible correction are justified. State media, including the Xinhua News Agency, have already warned small investors to be on their guard after recent market jumps. A representative from China's securities regulator has also warned individuals not to blindly invest.

While investors are hoping for further rallies, a sustained bull market should rest on a solid economic foundation. Investors should not worry too much about what banks have to say.