China's securities regulator aims to stop large foreign capital flows

Fang Xinghai (second from the left), vice chairman of China Securities Regulatory Commission, attends a panel in Boao Forum for Asia Annual Conference on April 19, 2021, Qionghai, Hainan Province, China. Wu Zheyu/CGTN

China's securities regulator will put effort into preventing dramatic foreign in and outflows in the domestic capital market, said its vice chairman.

If a foreign account causes significant fluctuations in China's stock market, the regulator would suspend its trading, Fang Xinghai, vice chairman of China Securities Regulatory Commission, said Monday on a panel at the Boao Forum for Asia Annual Conference 2021.

As of March 31, foreign capital accounts for five percent of the Chinese stock market, according to Fang. He also said the role of foreign capital is to strengthen the stock price.

The Chinese stock market is more stable than before due to the inflow of foreign capital, he added.

"We are confident of safeguarding capital market stability during the process of opening-up," said Fang.