(Yicai) Aug. 13 -- The trading volume on China’s mainland stock markets should improve soon, after tumbling to the lowest in four years yesterday, industry experts told Yicai.

Mainland shares are quite close to a turning point now, said Hu Yu, chief economist at Shenzhen Xinding Fund Management. The market has been this soft before, but managed to stage a recovery,

Turnover on the Shanghai and Shenzhen bourses was just CNY495.9 billion (USD69.1 billion) yesterday, the lowest since May 25, 2020.

Investors have become more cautious, a number of industry experts said. Listed firms are still disclosing their interim results and there are uncertainties such as geopolitical tensions.

Mainland stocks could see a shift in direction later this month or in September, said Fan Jituo, a strategy analyst at Cinda Securities. Previously, the market would snooze after a correction in the previous quarter. This time the market may not rest for long after the last wave of increases in mid-May.

There aren’t many reasons to be upbeat about profitability at the moment, Fan said. The market will probably continue to fluctuate. Whether it can reverse the current downturn later this month mostly depends on the economy and whether profitability improves.

In the short run, mainland stocks are likely to rebound, said Deng Lijun, a strategy analyst at Huajin Securities. Listed companies’ semi-annual results may show an increase in profitability, as exports grow and as growth-stabilizing policies lead to an increase in investment and an uptick in consumption.

Also, the US Federal Reserve is very likely to hike rates in September. China may loosen its monetary policy further which could lead to a slight rebound in short-term financing and the influx of overseas capital, Deng said.

Editors: Shi Yi, Kim Taylor