Stocks News
- Top regulator warns of stock-market risks
Date: 11-Sep-2007 Sources: (Shenzhen Daily)
THE country's top securities regulator has warned of the risk to newcomers investing in the country's booming stock market, in a fresh sign of the government's concern about the potential impact of a market slump.
'Some investors, especially newcomers, lack securities knowledge, risk awareness and the ability to afford losses,'domestic media quoted Shang Fulin, chairman of the China Securities Regulatory Commission, as saying yesterday.
He also said China shares are increasingly responsive to fluctuations on major global equity markets, but didn't elaborate.
The benchmark Shanghai Composite Index has more than doubled since the start of this year after the index soared 1.3 times in 2006.
Shang urged brokerages, intermediary agencies selling securities funds and other financial institutions to help dispel the popular notion that investors can get rich quickly through stock investments and that the government will protect them in the event of a fall in the market.
In another development, schools in the southeastern province of Fujian have been told to caution students against dabbling in the stock market.
'Local education departments and schools must instruct students to think twice before investing in highly risky stocks,'the Beijing News said, citing a government notice in Fujian.
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