Xie Guozhong, former chief China economist for Morgan Stanley, suggested regulators should come up with certain policies to put the brakes on the surging stock market for the good of longterm economic development and social stability. The growing bubble in the countrys stock market is concern, said central bank governor Zhou Xiaochuan last week, adding he would closely monitor asset prices, the consumer price index and producer price index.

Chinas equity market is starting to show signs of getting out of control, said Zuo Xiaolei, chief economist of China Galaxy Securities in China Securities Journal on The market rose even after the interest rate rose in and the bank reserve ratio to 11China stocks rebound, recovering lost groundStocks fall as GDP growth, inflation acceleratesStock index futures unlikely before reportMore investors join wild bull runChina stocks hit fresh highBlue chips push stocks to new highChina stocks at new high after seesaw session China stocks hit new high on investment feverChina stocks hit record highWhen the

Record number of investors will be less than the number of accounts at the Shanghai and Shenzhen bourses is almost million, official statistics showed. What Xiao is doing mirrors an investment mania that is sweeping across China. Much pain if bubble bursts When the bubble bursts, the pain will be much more painful as the losers are those that can least afford to lose their money, analysts said. Then why take such risk? Maybe it is the lure of the stock market.

Much pain if bubble bursts When the bubble bursts, the pain will be much more painful as the losers are those that can least afford to lose their money, analysts said. The stock market has soared more than percent so far this year on top of percent gain in drawing tens of thousands of investors in each day. Video Shanghai Composite Index broke the psychologically important barrier of 4,000 points on less than two months after surpassing the 3000point mark. If the value of Xiaos portfolio drops below million yuan, the lender will monitor his stock trading account.

Last week, senior surnamed Zhang, 61, in Nanjing asked his daughter to invest his savings of 60,000 yuan into the equity market forever. He hopes to double his investment, at the expense of his nutrition. Xiao Li, student of Nanjing University, opened an account at local brokerage firm in Guangzhou, South Chinas Guangdong Province 9, Xie Guozhong, former chief China economist for Morgan Stanley, suggested regulators should come up with certain policies to put the brakes on the surging stock market for the good of longterm economic development and social stability.
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