20 Jul 2015

China defends stock market intervention

5:04 pm on 20 July 2015

The Chinese government has defended its intervention in the country's stock markets.

Zhu Guangyao

Zhu Guangyao Photo: AFP

It came after shares lost about a third of their value in a matter of weeks.

China's Vice Finance Minister Zhu Guangyao said the intervention had been necessary because some investors had broken the rules by borrowing too much money in order to buy shares, a process known as leverage.

Mr Zhu said stability was essential in markets and that Chinese regulators had learned from Britain and the United States on how best to deal with market turbulence.

Mr Zhu also called for solidarity among eurozone countries to keep Greece in the single currency. He said China wanted a strong euro and a prosperous European Union and for Britain to remain a member of it.