Only by constantly finding solutions to problems can China s stock market forge ahead. Natural growth process Liu characterized the alleged market manipulations as actually being signs of progress and that investors should not overestimate risks. One should not kill the child just because he has done something wrong. Instead, a child of this age needs the utmost care of grown-ups. He said that no one should ignore the inherent risks of a market but neither should anyone overestimate the risks.
Risk exists, especially in capital markets.
Liu suggested enhancing stock market transparency, fine-tuning existing laws and regulations and encouraging institutional investors, noting that these methods have been employed with great effect by stock markets in western countries. China s stock market will mature when it eventually conforms to international standards, he said. The top priority is to improve the quality of listed companies and ensure that stock exchanges obey the law and don't cheat, he added. Liu says he prefers regulation to readjustment. The path to take is to calibrate existing laws and regulations, fortify law enforcement, enhance technological innovation and closely monitor the stock market, the story said.