Guo Shuqing, chairman of the China Securities Regulatory Commission (CSRC), said at a conference recently that China's stock market is immature and full of blindness and volatility, perhaps making stock investment a poor choice for low-income earners and pensioners.
These remarks ignited a firestorm of debate among investors. If the immature market is not right for low-income individuals, does that make it any more or less suitable for rich investors? Personal wealth should not be a factor when it comes to deciding who should be allowed to enter the public stock market. The strength of the regulatory environment, market supervision and investor protection should be the biggest determiners bringing in investors or keeping them away.
Securities regulators should consider why the A-share market is still immature after two decades of development instead of worrying about who should enter the market. They should also take more responsibility for the blindness and volatility seen in the market, since both of these forces can be minimized with proper supervision.
The author is Cao Zhongming, an economic commentator.