(Yicai Global) March 6 -- China should encourage, tolerate and welcome the new economy, new formats, new products and new service models, a chief economist at a major China brokerage urged yesterday.

A tolerant attitude should prevail toward disorderly market competition that has emerged in the new economy, new formats, new products and new service models in initial phases, said Yang Chengzhang, a member of the advisory Chinese People's Political Consultative Conference (CPPCC) and chief economist at Shenyin & Wanguo Securities Co. in Shanghai, who is participating in the CPPCC meeting, in an interview with Yicai Global.

If a high degree of order is required from the outset, this will be problematic because market competition is a progression from disorder to order, Yang said.

Of course, as these new economies, new formats, new products and new service models reach a critical mass, they must undergo standardization and regulation, Yang told media. For example, the government is now starting to regulate new services such as bike-sharing and internet finance.

On mass investment in these new industries, Yang said that only a few leading players in each field and segment can form a competitive position in the end and for all players to grow is impossible. Therefore, investors need to rationally invest in accordance with the law of investment, the characteristics of different stages, and investment risks.

"In the past, China formed a set of investment models based on tangible commodity production such as traditional manufacturing and industry. How to value these new economies, new formats and new ways will be a learning process," he cautioned.