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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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From: Haim R. Branisteanu5/13/2007 5:53:22 AM
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13 May 2007 09:40 GMT - Chinese regulator delivers stern warning to stock market investors

BEIJING (XFN-ASIA) - The China Securities Regulatory Commission (CSRC) has given a stern warning about the risks of investing in the stock market.

The commission said in a statement posted on its website Friday: "Investors should be fully aware that there exists no stock on earth whose prices only surge and never slump, neither can they expect investment instruments which will only bring in money and do not cause losses."

The statement continued: "Investors ... should understand and bear in mind all the time that they will have to be responsible on their own for whatever the consequences are of their investments, and manage their personal wealth with a sober mind by giving the security of their funds priority."

Last week, Shanghai's main stock index rose above 4,000 points for the first time. It has gained about 50 pct since the start of this year, having risen by 130 pct last year.

The CSRC said: "Investors ... should understand and always remember that funds indispensable for their everyday living are for the security of their personal lives and family life and therefore they cannot afford to use them for any reckless investment."

The regulator also said it would crack down on insider trading and market manipulation, especially by senior managers of listed companies and staff of securities firms who cash-in on information they intentionally hold back from the public.
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