From Wall Street Journal:
China’s government reserves the right to intervene in the stock market if necessary, a senior securities regulator said, although its main role is building institutions to allow the market to function on its own.
Tu Guangshao, a vice-chairman of the China Securities Regulatory Commission who spoke with reporters here yesterday, didn’t suggest that the government is considering any action and never discussed the level of stock prices.
Mr. Tu emphasized that investors are responsible for educating themselves about the risks of investing in stock markets — a topic that has drawn increasing attention as Chinese stock prices have zoomed to what growing numbers of observers worry are unsustainable levels. At over 6,000 points, the benchmark Shanghai Composite Index is now three times its level of a year ago, and has more than doubled this year alone. [Full Text]