China's financial market is growing at a brisk pace. The public has high hopes for the financial innovations and investment products on the market, such as the gold futures market that began this year. But does the rapid growth have hidden risks?

Despite the enormous potential benefits financial innovation could bring, it may also create undefined risks, a commentary in Tuesday's China Daily says. The public should not take hasty action in the financial market.

The commentary points out that the U.S. subprime mortgage crisis has already sent out a warning to global markets. Although it is still too early to access its full impact, the severe decline in the leading index of China's high-flying stock market this year could point toward danger.

An expert quoted in the article says that there should be a greater effort to understand and manage the risks associated with financial innovation. There is no quick fix, but tighter regulations and more government oversight would be steps in the right direction.