Stocks News
- Economists' views sought on stocks
Date: 15-May-2007 Sources: (Shenzhen Daily)
THE State Council, or Cabinet, has sought suggestions from top economists on ways to control the rapid rise of the country's share prices, sources said yesterday.
At a recently convened meeting, prominent economists debated whether stocks were currently in a bubble, and they also discussed whether a capital gains tax might be needed, although no consensus was reached, the sources who were present at the meeting, said.
'As I understand it, the authorities are very concerned about the current situation in the stock market,'one source said.
Among six people at the meeting were Ba Shusong from a think tank under the State Council, Ha Jiming from leading Chinese investment bank China International Capital Corp. and Galaxy Securities chief economist Zuo Xiaolei.
A second source said the economists had not reached any conclusions about what steps the government should take to prevent the Shanghai Composite Index from soaring further.
Domestic A shares breached the 4,000 point mark for the first time last week, fanning fears that the market has climbed dangerously high. The composite index has surged about 50 percent since the start of this year.
On Saturday, the securities regulator said it would intensify efforts to clamp down on growing insider trading practices and stock price manipulation.
Analysts widely expect the government to pick up the pace of interest rate rises to bring real interest rates out of negative territory and to help dampen enthusiasm towards domestic shares.
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