Chinese Stock Market Lacks Solid Foundation, Regulator Says – AP
From AP via the International Herald Tribune:
The top Chinese securities regulator warned Monday that the country’s stock markets lacked long- term stability and required significant reforms, despite a sustained rally over the past year that has lifted valuations on both the country’s bourses to unprecedented levels.
Chinese stocks surged to another record high Monday, with the benchmark Shanghai Composite Index gaining 3.6 percent to close at 2,933.19 because of strong buying of retailers and transportation shares. The smaller Shenzhen Composite Index jumped 4.2 percent to 700.20, also a record close.
In a speech published on the front page of the Shanghai Securities News, Shang Fulin, head of the China Securities Regulatory Commission, said that the recent “positive change” in the Chinese stock market was only preliminary.[Full Text]