Market experts warn investors to be more cautious

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Source: CCTV.com | 05-10-2007 09:10

As share prices make record gains, experts are warning investors, especially retail investors, to be more cautious.

Stock brokers's service centers have been crowded with people. Among them are investors busy doing transactions, and more new comers opening accounts. This April saw more new investors enter the market than the previous two years combined. But experts say there are also some weak shares, perhaps creating a bubble in the market.

Zuo Xiaolei, chief economist Galaxy securities, said, "I don't think it's good for the market to go up everyday. It's unusual. Just because it's climbing doesn't mean it's supposed to."

Wang Jian, Beijing Yuetan branch Mgr. Huatai securities, said, "Although there are many new accounts opened every day, they are individual accounts, not institutional accounts with big capitals. What's more, most new individual investors are new to the market."

According to a survey, most new stock market investors do not have the necessary skill or knowledge of the market, and are trading without enough awareness of the risks involved. Experts are warning investors to be mindful of the potential downside, and to trade with caution.

Editor:Du Xiaodan