Finance official: Stock market needs more confidence

Watch Video

Play Video

A senior Chinese finance official says what the country's stock market lacks now is not liquidity, but confidence.

At a financial meeting in Shanghai, Wu Xiaoling, vice director of the NPC Financial and Economic Affairs Committee said the central bank's adjustment measures should not be the major reason for stock market fluctuation.

China now has bank savings of more than 4 trillion yuan, and she says the capital market needs confidence and good companies, instead of liquidity. She suggests more work should be done to improve listed companies and financial institutions.

Considering the potential of the country's economy, China's stock market has enormous future prospects. Wu Xiaoling also says the government should stay away from risks and reduce its leverage ratio.