Shanghai stocks will likely continue their upswing this week, but there may be some brief dips as investors pocket gains, analysts said.

The benchmark stock gauge has a chance to hit an all-time high late this month as a large amount capital is expected to pour into big-cap stocks before the launch of equity-index futures, experts said.

Companies in banking, steel making, real estate and machinery are expected to be among the hot properties as a result of a stronger yuan and improved profit prospects, they said.

The Shanghai Composite Index, which tracks yuan-denominated A shares and hard-currency B chips, rose 2.5 percent last week to close at 2012.05. The barometer crested above the 2,100 level in intraday trading on Friday for the first time in 64 months and has headed north for 14 weeks in a row.

"With an increasing amount of cash flowing into equities, chances are that we can expect the index to breach the 2,245 peak set in 2001," said Liu Yu, an Orient Securities Co trader. "Before that, a short-term correction may strike, but it won't dent overall sentiment."

Heavyweights posted big gains last week. Baoshan Iron & Steel Co, China's largest steel maker, was up 7.11 percent for the five days, ending at 6.78 yuan (86 US cents) on Friday.

China plans to launch its first equity-index futures contracts in the first quarter of next year, using a benchmark that tracks the country's biggest 300 listed companies by market value.

The blue-chip gauge picked up 20.4 percent last month, compared with a 16.1 percent rise in the Shanghai Composite Index.

Beijing Shoufang Investment Consultant Co expects that real estate and steel-making chips, which tend to pay heavy dividends at the year's end, will likely experience continued growth.

But the broad market, long driven by big-cap firms such as China Merchants Bank Co and China Petroleum & Chemical Corp, may face some downward risks even as additional funds are flooding in.

"It's probable you will see the index move back and forth next week before picking up momentum again late this month to likely hit a record high," said Lu Zhiming, a Guohai Securities Co analyst.

"But profit taking will be short-lived as more investors are considering how to step in rather than pull out."

Beijing Shoufang predicts the index will probably move in a range between 2,000 and 2,155 this week.

It is expected to close at around 2,100, the consulting firm said.