2015年CRI Lord Mayor of the City of London: China's Stock Market ＂Hiccup＂ Part of Market Evolution（在线收听）

Lord Mayor of the City of London: China's Stock Market ＂Hiccup＂ Part of Market Evolution

In a press briefing with journalists on his planned visit to China next week, the Lord Mayor says it is a common episode in any emerging market to have overblown stock bubbles burst at a certain point.

"We are talking about a market which is very very young and I think to archive what they have archived so far in that period of time, inevitably there will be hiccups and bits of volatility. We've just been through one, it will stabilize and so it's about finding ways to actually smoothing the volatility of these markets. "

A specialist in investment banking and a successful businessman himself, the Lord Mayor explains that the stock market turbulence is part of a process in China's evolution to an institutional economy.

"Each market goes through processes of evolution, it starts off with individuals, dynasties, companies and families and so on. It's all about the individual in the beginning. But it takes the evolution of the institutional market to take place. The institutional market normally took place actually after a crash like this because people suddenly realize they aren't as good at judging things as individual and therefore they decided to go and hire professional managers."

Carrying on the annual duty as the Lord Mayor of the City of London, Alan Yarrow will lead a business delegation to a ten-day trip to Hong Kong and Chinese mainland cities including Beijing and Shanghai.

In October, the Lord Mayor is also scheduled to host a banquet at the City of London in honor of Chinese President Xi Jinping's state visit to the UK. The Lord Mayor says he's looking forward to welcoming the Chinese President in the year which marked the "golden era" in China-UK relations.

"We by definition do 44% of foreign exchange in global trade here in the City of London. We can not afford not to be interested in countries which are growing fast and actually have a very big impact on the world economy. So we are here to support, in partnership, the development to the Chinese economy. And there's a lot we can do to support China. I think we hear more about collaborations in his visit. We are very proactive and we want to be there and be a firm partner of China."

For CRI, I'm Duan Xuelian in London.