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The racing stock market is amassing risks, even though a recent rally was mainly because of economic fundamentals, Zhu Min, group executive vice president of Bank of China, said on Tuesday.

The A-share market has more than tripled since the start of last year and now trades on a higher average earnings multiple than the average of developed markets, prompting concerns among some officials over a potential bubble.

Zhu said China's stock market performance was partly due to the strength of the overall economy, listed companies' good profitability and improved oversight.

"China is an emerging economy in the process of rapid growth, which entails strong exports and the resulting excess liquidity, as well as a racing stock market," he told students at Beijing University.

"The stock rally has its real foundations, but on the other hand, it is undeniable that there are some unfounded factors."

The benchmark Shanghai Composite Index broke through the 4,000 barrier for the first time last week.

The index fell 3.64 percent Tuesday as investors cashed in shares and locked in profits on fears of regulatory steps to cool the market. The index is up 46 percent since the end of last year.

"There are still many irregularities in the market. And in this sense, we can say that the stock market is accumulating risks," Zhu said

Editor: Yan