Financial safety given top priority

SHANGHAI: China will learn from the US subprime crisis and further strengthen supervision on financial innovation to ensure the safe operation of its capital market, the head of the country's stock market regulator said on Friday.

"We need to transfer the emphasis of supervision from the institutions themselves to the businesses they are involved in, so that we can reduce the supervision areas we neglected and raise efficiency," said Shang Fulin, chairman of the China Securities Regulatory Commission (CSRC), at the Lujiazui Forum 2008 on Friday.

He said that the market regulator should carry out in-depth research into innovative products and form an effective risk evaluation mechanism.