2015-04-30

Caixin Unloads on the Bull Market

History has shown that any attempt to control the stock market can be futile and dangerous. Blind approval of the current rally will only create a mad bull and only worsen deep-rooted conflicts. Regulators should remind investors of the risks rather than trying to rein in the market. The number of stock trading accounts in the first quarter surged by 433 per cent to more than 7.95 million, and most are held by novice investors. More importantly, the massive funds in the market have yet to be put to a stress test. A sudden correction could lead to chaos. Regulators should closely monitor the risks and crack down on illegal activities such as insider trading, information disclosure fraud and market manipulation.

Any hopes that the stock market can boost the economy fail to understand the relationship between the two. Only unwavering reforms can produce a healthy stock market that will help the real economy.

Caixin: Notion that Stock Market Can Boost Economy Is Misguided

No comments:

Post a Comment