China must learn lessons from stock market rout: vice finance minister
By Karin Strohecker and Sarah Young
LONDON (Reuters) - China must learn lessons from its stock market rout, the country's vice finance minister said on Saturday, signaling his intent to focus on supervision and the development of new frameworks to make it possible to weather any future market turbulence.
China's stock market plunged by nearly a third at one stage earlier this month from a mid-June peak, wiping around $4 trillion from share values as investors were spooked by speculation that China's central bank was about to end its monetary policy easing.
The slide sparked China's biggest rescue effort of its equity market, with the government launching a series of moves that included halting flotations and banning companies and their executives from selling shares.
Zhu Guangyao told Reuters Beijing was considering new policies.
"There is a mismatch for supervision, and that is a real challenge," he said in an interview at the Chinese Embassy in London. "After the big up and the big down we saw, we need to learn from other countries, mature stock markets including the U.S. and U.K."
The market has bounced in recent sessions and the CSI300 index .CSI300 of the largest listed companies in Shanghai and Shenzhen rose 3.9 percent on Friday to 4,151.50, up 1.1 on the week.
Zhu said China's intervention to stabilize the market was justified given the level of turbulence and that there would now be an evaluation of what had happened to help draw up policies to handle any future market turmoil.
However he did not say what other policies might be considered. Continued...