Regulator vows steps to restore market stability

China's securities regulator said on Friday that maintaining stock market stability and restoring investor confidence are still its top priorities, despite the recent turbulence which dampened market sentiment and trading volume.

The regulator has met with all major securities brokerages and funds and urged them to better control their margin trading and short sales business, both of which have been blamed for the recent roller-coaster ride in the A-share market, according to Deng Ge, the spokesman of the China Securities Regulatory Commission.

Zhang Yujun, assistant chairman of the CSRC urged financial institutions to prudently control their scale of assets in leveraged trading and said these should be appropriately matched with the capital position and risk management capability.