A senior official with the securities regulator said China reserved the right to intervene in the stock market to deal with "distortion or other imperfections," the Wall Street Journal reported. Tu Guangshao, vice chairman of the China Securities Regulatory Commission (CSRC), neither said the government was considering taking action nor discussed the level of stock prices. But he stressed that there are times when intervention is appropriate, "regardless of whether it is a mature market or not." The Shanghai Composite Index, which stands at over 6,000 points, has more than doubled in value this year alone and many observers say it is at an unsustainable level. Tu said the CSRC has consistently tried to reduce its interference in the market to make it more predictable for investors. He added that although the regulators are trying to raise awareness of risk, investors are ultimately responsible for educating themselves about stock purchasing.
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