Investor sentiment is expected to be cautious this week after a meeting of the country's top political leaders pledged to adopt a prudent monetary policy, and introduce effective but flexible macroeconomic policies to tighten liquidity.

The Shanghai Composite Index ended 0.04 percent lower to close at 2,842.43 points last Friday.

The leaders said last Friday that China would end the relatively loose monetary policy to cool inflation and maintain a proactive fiscal policy to sustain economic growth.

The National Bureau of Statistics will unveil November's macroeconomic data, including import and export figures and the monthly consumer price index, on Friday and Saturday.

The official Purchasing Managers' Index, a comprehensive measure of industrial activities nationwide, rose for a fourth month to 55.2 percent in November, the China Federation of Logistics and Purchasing said on Wednesday.

"Factory gate costs are still rising and inflation pressures remain while the market is worried more tightening moves may be announced in the near future," according to Yi Xiaobin, an analyst at Galaxy Securities.

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