China Securities Regulatory Commission (CSRC) urged stock
exchanges, securities dealers and related authorities to educate
investors in risks of stock market investment in a notice released
on Friday.
After four years in the doldrums, China's stock markets began to
rebound at the beginning of 2006, with the benchmark Shanghai
Composite Index nearly doubling in a year.
These institutions must make investors understand that stock
markets are risky and they should be cautious in entering the
market, especially for those who use all their savings or pawn
their apartments for loans to invest in stocks, the notice
said.
The number of new trading accounts opened by individuals in the
Chinese mainland's two bourses reached five million in the first
quarter of this year, compared with 3.08 million for the whole of
last year.
Saying that the number of "irregularities" in the stock market
was rising, the CSRC also told listed companies, securities dealers
and other related institutions to release accurate, authentic,
complete and timely information.
(Xinhua News Agency May 12, 2007)