According to Xu from Everbright, quantitative easing in the US enlarges external demand for China and also injects capital into the Chinese market, which is positive for the country's economy. However, regarding a stock market with a value of 30 trillion yuan, a monthly capital inflow of 100 to 200 billion yuan is not going to cause a great deal of turbulence.

Compared with liquidity, investors are more concerned about China's softening economic condition, following lower-than-expected data.

China's economy unexpectedly stumbled in the first quarter of the year, growing 7.7 percent from a year earlier. An official PMI in May read 50.8, slightly up from 50.6 in April.

The MNI business sentiment indicator dropped to 56.7 in May from 58.5 in April, indicating Chinese businessmen are less optimistic about prospects than they were a month ago.

Some analysts said the data reflects the slowing momentum of the world's second-largest economy.

But Xu said he expects a continuous and moderate macroeconomic recovery, which will be boosted mainly by a mild growth in fixed investments, especially in property investments - which have been curbed since February by a series of tightening policies.

Gao from UBS predicts the annual GDP growth rate at around 7.7 percent. "Quarter 2 and quarter 3 may see a growth rate close to 7.7 percent, but I do not see a big pick up there," he said.