China Fortune Securities: greater volatilities

Investment director of China Fortune Securities Qiu Yanying believes the market behavior at the end of 2014 was mostly driven by highly speculative financial leverage.

"Price bubbles inflated quickly during the bull run; the high price and leveraging may trigger greater and stronger volatilities, which in turn (have the potential) to heighten risks," he said.

Minsheng Securities: irrational exuberance drags down potential

In the short-term, the biggest risks in the stock market stem from pressures from policymakers, as the economic slowdown and inflating asset bubbles constrain further monetary easing measures, Minsheng Securities said. The company added that last year's "irrational exuberance had used up the market's upward potential".

From a medium-term prospective, the biggest risk is the likelihood that rising demand in real economy and higher asset prices may raise the financing cost, which in turn will change people's investment habits.