CHINA must learn lessons from its stock market rout, the country’s vice finance minister said Saturday, signaling his intent to focus on supervision and the development of new frameworks to make it possible to weather any future market turbulence.

    China’s stock market plunged by nearly a third at one stage earlier this month from a mid-June peak, wiping around US$4 trillion from share values.

    The slide sparked China’s biggest rescue effort of its equity market, with the government launching a series of moves that included halting flotations and banning companies and their executives from selling shares.

    Zhu Guangyao told Reuters the government was considering new policies.

    “There is a mismatch for supervision, and that is a real challenge,” he said in an interview at the Chinese Embassy in London. “After the big up and the big down we saw, we need to learn from other countries, mature stock markets including the United States and United Kingdom.”

    The market has bounced in recent sessions and the CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 3.9 percent Friday to 4,151.50, up 1.1 on the week.

    Zhu said China’s intervention to stabilize the market was justified given the level of turbulence and that there would now be an evaluation of what had happened to help draw up policies to handle any future market turmoil.

    However, he did not say what other policies might be considered. Some investors have said market reforms and a move toward a market-driven economy, rather than short-term steps such as limiting share sales, are what will nurse markets back to health.(SD-Agencies)