Goldman strategist says stock prices 'are too high'

The rise of the Chinese A-share market is unsustainable without the support of both solid economic fundamentals and substantial reform measures, a leading investment industry figure said at the China Wealth Forum, held on Saturday in the coastal city of Qingdao, Shandong province.

Ha Jiming, chief investment strategist of Goldman Sachs Group Inc's investment management unit in China, said: "Current stock prices are too high and will fall if the government does not take substantial reform measures to change the economic structure and improve economic benefits, rather than trying to stimulate the stock market with policies."

Ha said the Chinese capital market is overvalued, leverage is too high and investors are over-zealous - three factors likely to cause a bubble.