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Analysts from Beijing-based China International Capital Corporation Limited, or CICC, wrote in a note that the northbound investment - funds coming from Hong Kong into the Chinese mainland bourses - has mainly targeted blue-chip A shares since March-end.

And don't just focus on the soup and miss out all the cooked ingredients. Ninety percent of the protein still lies in the meat!

Analysts said that PICC, while consolidating its leading position in the property and casualty business, needs to boost the strength of its life and health insurance arms to better balance its business structure.

Analysts from Shanghai-based financial service provider Noah Holdings Ltd wrote in a report that the inflow of overseas capital has been the major driver of the bounce in the A-share market, especially the undervalued sectors. Foreign investors' continued interest in the A-share market has generated a multiplier effect by attracting other capital into the market, said the Noah analysts.

Analysts said that last year, Sino-US trade tensions and the US Fed's monetary tightening process increased the concerns of global investors.