Investors sit on sidelines, holding cash

The benchmark Shanghai Composite Index rose 0.16 percent to 2,109.47 points on Monday, reversing a losing streak over the previous three trading days, as investors moved to the sidelines waiting for a clearer vision of the economic front from the ongoing Party meeting.

Stock analysts said that they believe that the Third Plenary Session of the 18th Central Committee of the Communist Party of China will be "positive" for the stock market. But they added that they aren't ready to place any bets now, because it's too early to make any meaningful assessments on which sectors of the economy will be the most affected.

"People are looking for indications and clues for reforms," said Catherine Yeung, a Hong Kong-based investment director at Fidelity Worldwide Investment.