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KMT think tank optimistic about China's stock market

KMT think tank optimistic about China's stock market

Shanghai, July 9 (CNA)
Yiin Chii-ming, former minister of economic affairs of the Republic of China, Thursday suggested that as the stock market will eventually reflect China's economic fundamentals,which he considers pretty good, he is not worried about the possibility of systemic risk.
Commenting on the stock market fluctuations in China over the past few days, Yiin, now a leader of the ruling Kuomintang's economics think tank, said that he remained optimistic about the economic prospects and stock market on the Chinese mainland.
Attending a cross-strait forum on cooperation of free trade zones, Yiin was asked to comment on the possibility that the drastic plunge of the stock index will lead to a systemic risk that cannot be mitigated through diversification.
Yiin said it is very unlikely, and the stock fluctuations will not affect the openness of the financial sector.
Hua Nan Financial Holding Chairman Liu Teng-cheng was more conservative while commenting on the effects of the stock market fluctuations.
Referring to Beijing's market rescue measures, Liu said, applying emergency measures to support the market might have a temporary effect but it would not solve the overall problem. The capital market needs more freedom of self-adjustment. The government should take the least intervention possible.
He suggested that the authorities on the Chinese mainland should be extremely careful in handling the stock market situation, because too many individual investors might fall into irrational speculations."Drastic measures can create serious side-effects," he said.
He said that he expects China's stock market will stabilize in the short run and head in a good direction. (By C.C. Ying and Lillian Lin)


Updated : 2021-09-24 05:18 GMT+08:00