WB warns China of share market risks
Afp, Beijing
The World Bank warned Wednesday the risk of a sharp correction in China's stock market could rise if share prices continued to soar but argued the impact on the overall economy would be limited. "If prices were to continue to rise rapidly, risks of a sudden change in mood and sharp negative correction could increase," the World Bank said in its latest quarterly update on the Chinese economy. "The main impact could be damage to the new-found confidence in the Chinese capital market." China's stock markets have tripled in value since 2005, sparking concerns of a major correction that could hit investors hard and possibly cause major problems for the wider economy.
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