China's securities watchdog on Saturday acknowledged regulation defects and vowed to learn a lesson from the stock market rout.
"Wild market swings revealed our supervision and management loopholes," said Xiao Gang, head of the China Securities Regulatory Commission (CSRC), at a national conference on securities market regulation.
"The CSRC will learn a lesson. We will improve regulation mechanisms, intensify supervision and guard against risks so as to create a stable and sound market," said Xiao.
He said the commission will "properly control" the scale of margin trading, which was blamed by some observers for partly heightening the market volatility last year.
The CSRC will closely watch program trading and make sure securities brokerages conduct such trading in a checked way, according to him.
In addition, the commission will strictly require investors to use real names when applying for securities trading accounts and urge public companies to disclose information in a timely and transparent manner.
