China urged to foster capital market investors
Updated: 2006-09-24 11:03 SHANGHAI -- China should
foster more capital market institutional investors to help the market develop in
a broad scope and depth, said a senior official with the Goldman Sachs Group.
Michael Evans, President of the Goldman Sachs Group in Asia, said that
China's capital market is developing fast and plays an increasingly important
role in the international arena.
What China lacks is not capital, but the ability to manage the capital,
Michael Evans said at a three-day forum of the Emerging Market Commission (EMS)
of the International Organization of Securities Commissions (IOSCO), which
opened in Shanghai last week.
He explained that speculative funds can lead share prices to fluctuate, while
institutional investors focus more attention on listed companies' performance,
thus helping stabilize the stock market.
Chief Executive Officer of the Hong Kong Securities and Futures Commission
(SFC) Martin Wheatley also said that security regulators should not only try to
maintain a stable stock market, but also promote the development of the market.
The regulators should promote the development of new financial products and
let all investors find suitable investment tools, he noted.
Shang Fulin, chairman of the China Securities Regulatory Commission (CSRC),
said at the EMC meeting, which was organized by the CSRC, that China is an
emerging capital market, which is also in a transitional period.
He pledged his commission would further promote the reform and opening of
China's capital market and solve emerging problems in the capital market through
The CSRC will gradually improve the opening policies for the capital market
to promote the market to develop in a healthy and stable way, said the