Cautious optimism based on low valuations and new leaders' plans for series of economic reforms

Strategists see buying opportunities to invest in Chinese equities, citing low valuations in the market as well as expectations of a better year ahead. However, with any benefits of structural reform taking time to show, volatility is expected to continue.

"We are positive in the near term for Chinese equities as far as the current pricing of asset continues," said Timothy Moe, chief Asia-Pacific Strategist of the Goldman Sachs Group Inc.