NPC deputies and CPPCC National Committee members held China Securities Regulatory Commission (CSRC) responsible for the stock market fall.
During group meetings of the current Session of the top legislative and advisory bodies over the past few days, China's security watchdog has become a target of strong fire from NPC deputies and CPPCC members.
It was reported that the composite index of Shanghai Stock Exchange rose to a historical high of 2240 points in the middle of last year, but it dived to around 1000 points toward the end of the year due a string of scandals.
NPC deputies and CPPCC members said that CSRC should be responsible for the listing of unqualified companies, the falsification of financial statements by listed companies, joint trading of listed companies with their controlling shareholders, excessive speculation and insider manipulation.
The bullish situation over the last few days after the opening of the annual sessions of legislative and advisory bodies did not prevent the NPC deputies and CPPCC members from castigating the unsatisfactory regulation by the securities watchdog.
Li Yafang, a CPPCC member, blamed CSRC for its slow or even no response to excessive market speculation, irregularities, the listing of unqualified companies and the irregular rent-seeking behavior.
Without strict and impartial regulation, it is impossible to steer the stock markets onto a path of healthy development, Li said.
Zhou Daojiong a NPC deputy and former chairman of the CSRC was quick to accept the criticisms and pledged to intensify regulation to minimize inside trading and vicious manipulation in order to protect the interests of mid-size and small investors.
Despite the complaints, NPC deputies and CPPCC members are still upbeat about the prospects of the stock market.
"I'm confident of China's stock market," said NPC Deputy Zhang Dachun, who is chairman of the board of a leading securities evaluation agency in the country. "The health of the stock market is sure to be restored in the foreseeable future, if regulation is enforced strictly."
(Xinhua News Agency March 9, 2002)