Containing financial risks will continue to be a key priority of China's top securities regulator this year as it pledged on Jan 17 to effectively and properly resolve risks in equity collateral business, bond defaults and private equity investment.

The China Securities Regulatory Commission also vowed to step up a crackdown on illegal activities such as fraudulent initial public offerings, financial fraud, insider trading and market manipulation.

The regulator gave the statement after its two-day annual work conference which closed on Jan 17 in Beijing.

Pushing market-based IPO reform is also a main objective of the regulator as it will gradually expand the registration-based share sale system with an emphasis on information disclosure to the wider marketplace.

Shenzhen's innovative startup board ChiNext will pilot the new IPO system based on the successful experience of Shanghai's technology-focused board called the STAR Market.

"The registration system is a sign that the Chinese stock market is becoming more mature as it is now connecting closer and closer to the global markets through arrangements such as Mainland-Hong Kong stock connect programs and the Shanghai-London trading link," said Chen Jiahe, chief investment officer of Novem Arcae Technologies.

"It is a system that aims at increasing the efficiency of the market. This will also bring more requirements to the expertise of investors," Chen said.

The CSRC said that it will also encourage more technology firms to go public and raise funds in the capital market. It will work to attract long-term institutional capital including equity funds into the market and promote the balanced development of financing and investment.

China's top legislature adopted the revised Securities Law last month which laid the legal basis for the country to deepen capital market reform, step up investor protection and substantially raise the costs companies will face for engaging in illegal activities.

The revised law will become effective on March 1.

The regulator said it will comprehensively strengthen the rule of law in China's capital markets, promote the revision of the country's Criminal Law, and push the legislation of the Futures Law to better protect the rights and interests of investors.

It will likewise work to improve the quality of listed companies and optimize a market-oriented and rules-based delisting process.

The regulator said it will boost the role of the capital market in serving the real economy and providing necessary financing to smaller businesses.