[Special Report] NPC & CPPCC Annual Sessions>>>

Ma Kai, minister in charge of the National Development and Reform Commission of China, addresses the media during the press conference held by the Fifth Session of the Tenth National People's Congress (NPC) at the Great Hall of the People in Beijing, capital of China, March 7, 2007. (Xinhua/Huang Jingwen)
 

The Chinese stock market is not powerful enough to exert strong influence on the world share market, said China's top economic planner Ma Kai on Wednesday.

Ma, minister in charge of the National Development and Reform Commission (NDRC), made the remarks on the sidelines of the ongoing annual session of the National People's Congress (NPC), China's top legislature.

"The recent fluctuation of the Chinese stock market should not be blamed for a major cause of the ups and downs of stock markets in other countries. They should have checked their own problems," Ma told a press conference.

In his response to the comment that China was the "curse" of the recent global stock market tremor, Ma said as China's stock market is "relatively small" and the country has not yet given a green light to the full convertibility of the yuan under capital accounts, it is impossible for the fledgling market to have strong worldwide impact.

"The volatility of the market, no matter bullish or bearish, only depends on trading," he said, adding investors should have a rational judgment on the risks and gains.

The reasons for stock markets' ups and downs are complicated, but domestic factors are main contributors to a market's fluctuation, said Ma, adding the market's vulnerability to an outside tremor largely rests with its dependence on international markets.

Ma said the government's duty is to strengthen supervision and maintain a sound market order with openness and justness.

China will unswervingly promote the capital market's healthy development, said Ma.

China's stock market saw the worst daily slump for 10 years on February 27, which was followed by a domino fall on global capital markets.

Some industry observers said the shock waves felt around the world were a clear sign that China's stock markets have become an important barometer for the world financial community.

After a four-year recession, China's mainland stock markets began to rebound at the beginning of 2006, with the benchmark Shanghai Composite Index, which covers A- and B- shares, continuously hitting new highs.

Editor: Yan