China to Develop Financial Innovations, Reforms, Regulator Says

By Zhao Yidi and Zhang Shidong

Nov. 15 (Bloomberg) -- China plans to develop financial- market innovations and reforms even as the U.S. subprime mortgage meltdown has triggered a global financial crisis, the country's securities regulator said.

``We will conduct in-depth research into new situations in the international markets,'' Yao Gang, vice chairman of the China Securities Regulatory Commission, said today at the International Finance Forum in Beijing. ``China will continue its reforms and opening of capital markets.'' Yao also said the securities regulator will encourage more companies to sell bonds to raise funds.

China's securities regulator has been taking measures to delay sales of state-owned funds and initial public offerings in its attempts to stabilize stock markets during the worst financial crisis since the Great Depression. The benchmark CSI 300 Index has dropped 64 percent this year.

The securities regulator will continue working on boosting market confidence and tightening scrutiny of potential insider trading, Liu Xinhua, assistant chairman of the agency, said on Nov. 13 during a conference in Beijing.

To contact the reporter on this story: Zhao Yidi in Beijing at at yzhao7@bloomberg.net; Zhang Shidong in Shanghai at szhang5@bloomberg.net