China’s redhot stock market is a place to harvest not only wealth, but also fame. Wang Zhongming, previously little known head of research with China’s state-owned assets watchdog, became a cult hero to stock market players overnight when he challenged mainstream opinion on May 19, announcing that “national stock fever” is to be welcomed and not feared.

“It symbolizes a new era in which growing numbers of people will create wealth,” Reuters quoted Wang as saying.

Before Wang made the comment, the media was overwhelmed by warnings that the flood of retail investors is taking the already stretched stock market bubble even closer to bursting point.

Going totally against the opinion of jumpy market analysts, Wang suggested less administrative interference during the current stock market boom. “There is no need to worry. China’s bullish market reflects its economic prosperity. And if it is really overheated, there should be enough data-evidence to prove this,” he said.

The benchmark CSI 300 Index, which tracks yuan-denominated A shares listed on China’s two exchanges, has jumped about 90 percent so far this year after more than doubling in 2006 to reach 3938.95 on May 23. According to official statistics, the country now has nearly 100 million brokerage accounts, or 33 percent more than a year earlier.

But Wang regards the bull market as a test of the government’s capacity to manipulate it and to help avoid risks. An overcautious attitude will restrain more investors and mislead policymakers, he said.

Given the continuous bullish run, China’s central bank has raised interest rates and banks’ deposit reserve ratio to curb excessive liquidity and speculation.

However, Wang believes levels seen in the stock market reflected confidence in China’s economic development rather than irrational behavior or market manipulation.

In an effort to build up investor confidence, particularly institutional investors, a package of measures have been adopted by China’s securities watchdog, such as increasing new issues, to balance supply and demand. Retail investors have also been warned to be responsible for their assets investment and management.