(CNBC) China’s still in a bull market despite recent wobbles, analyst says

Chinese stock markets will continue their trend higher over the long term despite recent dips caused by a regulatory clampdown in the country, one technical analyst told CNBC Monday.

“Our view is China’s actually still in a bull move. We’ve been looking for 3,600 (points) in the Shanghai composite for quite a long period of time, and we don’t see at the moment a reason to change that,” David Sneddon, global head of technical analysis at Credit Suisse, said.

Chinese shares fell across the board in the last week of November, with China’s blue-chip benchmark CSI 300 suffering its biggest loss since June 2016, tumbling nearly 3 percent on November 23. The Shanghai composite Index fell more than 2 percent during that session, as did the Shenzhen composite Index. In the following trading sessions the Shanghai index continued to move down, only picking up from Friday December 8 when it added 0.55 percent to close at 3,289.99 points. It added another 0.98 percent on Monday and closed at 3,322.24 points. Chinese indexes across the board have risen since Friday.

“China has clearly been a concern for people all year. We’ve actually had a wobble, in terms of the Shanghai composite for the last three to four weeks we’ve seen the market correct, (it) finally saw (a) bit of correction last week. But I think the critical thing on China is as much as there’s been this near term top, we’re still in this bigger uptrend that we’ve been in over the last two years,” Sneddon explained.

“Until you start breaking below 3,200 (points) that uptrend remains intact,” Sneddon added. “Going back to the health of the market and a correction — I think at the moment the Shanghai composite move is probably still a correction.”

The Chinese index has had an interesting year, climbing 24 percent from a two-year low in January 2016 despite a majority of its stocks having fallen in that period. This has been attributed to the index’s biggest companies starkly outperforming, despite the majority of its members — 724 out of 1,427 — registering declines.