Guests attend the debut ceremony of China's sci-tech innovation board (STAR market) at the Shanghai Stock Exchange in Shanghai. Photo:Xinhua

China's A-share market is expected to rise further in 2020 after a rallying 2019, as the economy is expected to grow at a stable speed and more foreign capital joins in, industry observers told the Global Times Wednesday. 

On Tuesday, the last trading day of 2019, the Shanghai Composite Index closed high at 3,050.12, up 0.33 percent. The Shenzhen Composite Index rose 0.63 percent to 10,430.77.

The Shanghai Composite Index may continue its rising trend to 3,600 in 2020, after reaching more than 3,000 at the end of 2019, said Yang Delong, chief economist at the Shenzhen-based First Seafront Fund Management. 

The equity market in the Chinese mainland became one of the best performing in 2019 globally, as major indexes jumped significantly. The Shanghai stock rose 22.3 percent on a yearly basis while the Shenzhen index was up 44.08 percent, according to Wind Financial Terminal. 

A total of 2,813 stocks on the A-share market saw their prices rise during 2019, accounting for 75 percent of all A-share stocks. Twenty stocks increased by more than 300 percent, and 249 stocks were up by more than 100 percent, Wind statistics showed. 

"The rise in the A-share market is backed up by the relatively fast economic growth and low valuation of the A-share market," Yang noted. "As the stocks are expected to grow, more investors, especially foreign institutional investors will be drawn in."

China's A-share market was included in the global index provided by MSCI in June in 2018. In November last year, MSCI raised the inclusion factor for China A shares to 20 percent. 

The growing inflow of foreign investment in the market signals global confidence in the potential of China's A-share market, according to Yang.

"While the overall outlook for A-share stocks in 2020 is optimistic, uncertainties still remain around the performance of the US market, which tends to affect China's A-share market when it tumbles," Dong Dengxin, director of the Finance and Securities Institute at Wuhan University of Science and Technology, told the Global Times.

The science and technology innovation board, launched in November 2018, is expected to have the biggest growth potential in 2020, Dong noted, as the companies listed on the board usually represent China's fast growing high-tech industries and have the best innovative capabilities.