EU calls for more transparency from China

China needs to be more transparent in explaining its financial policies to the world following a stock- market tumble over the summer, and be aware of risks from new financial instruments, a senior EU official said yesterday.

World financial markets have been watching closely since Chinese stock markets collapsed in mid-June following a long bull run, in turn dragging down indices across the globe.

In reaction, Beijing unveiled a series of policy changes and intervention aimed at shoring up markets and staving off full-blown panic, though some steps, like investigating reporters for spreading rumours, have appeared out of step with Chinese efforts to modernise how it handles the economy.