Financial Secretary John Tsang today urged investors to be cautious in light of recent market volatility.

Mr Tsang was responding to a record-breaking rally in the Hang Seng Index over the past two days, which he said was due to a number of reasons, including investors piling back into local stocks from the Easter and Ching Ming break and Mainland investors making use of a link-up between the Hong Kong and Shanghai exchanges.

The finance chief added that despite the advance, he could not see the risk of a bubble in the local stock market, but he called on investors to carefully consider the situation before making an investment decision.