The Chinese securities watchdog yesterday warned investors of mounting risks as the mainland's stock market continued its bull run.
The benchmark Shanghai Composite Index closed at another record high of 6092 yesterday after it broke the 6000 point barrier a day earlier.
A survey was conducted recently by financial services provider ING. It said 70 percent of Chinese mainland respondents expect the stock market to continue rising in the next three months.
The market is driven by high liquidity and the return of heavyweight State-owned enterprises from overseas bourses to the domestic A-share market.
Shang Fulin, chairman of the China Securities Regulatory Commission, said risks have been gathering in the stock market and investors must exercise caution.
"I want to express my concern over the lack of risk awareness among investors," Shang told a panel discussion during the 17th National Congress of the Communist Party of China.
Leading bankers and insurers who took part in the discussion also voiced concerns about "risks and bubbles" in the banking sector and the economy.
Hu Xiaolian is head of the State Administration of Foreign Exchange (SAFE), and also leads a group of leading bankers, insurers and regulators. He suggested the financial sector must continue to open up to global partners.
"Just as Party chief Hu Jintao said in his report, we cannot solve problems by closing the door to the rest of the world," said Hu. "Opening up and continuing to integrate into the global capital market is the right solution."
The economy clocked up growth of more than 10 percent in the past four years and grew by 11.5 percent in the first half.
（英语点津 Celene 编辑）
About the broadcaster:
Jonathan Stewart is a media and journalism expert from the United States with four years of experience as a writer and instructor. He accepted a foreign expert position with chinadaily.com.cn in June 2007 following the completion of his Master of Arts degree in International Relations and Comparative Politics.
