Decisive steps to shore up capital markets needed

SHANGHAI: Decisive and coherent policy measures to revitalize the equity market are needed to materialize the 4 trillion yuan stimulus package and also shore up China's economy, ten top economists said in a joint plea to the central government.

The hefty fall of the Chinese stock market, often seen as the barometer of the country's economic and social conditions, may lead to systematical risks in the banking and fiscal systems as well as put listed companies into a "vicious spiral", they said. Revitalization of the stock market will spur the country's domestic consumption and investment, they claimed.

"We noticed the absence of effective policies to stabilize the volatile financial market in the stimulus package and hence seek more moves for this sector," said Wu Shiqiu, a professor from Renmin University of China, who is also among the ten economists.