China's stock market has long failed to live up to expectations of stellar gains, but that hasn't stopped some analysts from holding out hope for the Shanghai Composite.
"People still view China as the ugly duckling, but we think it's going to be the swan," Catherine Yeung, an investment director at Fidelity Worldwide Investment, told CNBC on Thursday.
"We continue to be overweight China stocks when you look at Hong Kong and China combined," she added.
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The Chinese equity market is down over 4 percent year to date. In the past year the market is down 11 percent, while broader Asian markets outside Japan have gained almost 7 percent and the S&P 500 has rallied just over 17 percent.
Concerns about slowing economic growth in China, the world's second biggest economy, combined with worries about the shadow banking and property sectors have undermined the stock market.
Perhaps 2014 may turn out to be another lackluster year for Chinese equities, but the outlook should be brighter as long as Beijing does not resort to a heavy dose of stimulus to meet its growth targets, analysts said.
"The outlook is as positive as it has been for several years and contributing to that is the progress in place and more stable monetary conditions," said Tim Condon, head of research for Asia at ING Financial.
"This is a year of consolidation but 2015 may be the year that we see the Shanghai Composite begin to claw back towards 6,000 after several years of dismal performance," he said.
The Shanghai Composite stood at around 2,037 in early Friday trade.
China's economy grew at annual pace of 7.4 percent in the first quarter, slowing from 7.7 percent in the final quarter of last year. Recent economic data suggest the economy is stabilizing, helped by a series of "mini stimulus" measures from Beijing.