Securities law must prioritize investor protection: official

BEIJING -- Protecting investor interests is a priority when amending China's securities law, the head of the country's securities regulator has said.

Amending the existing securities law, which was last altered in 2005 and came into effect in 2006, is among the top priorities of the standing committee of China's top legislature - the National People's Congress, according to a plan released in October.

"In essence, securities law is a law on investor protection," Xiao Gang, chairman of the China Securities Regulatory Commission, was cited by Friday's China Securities Journal as saying.

Protecting public investors should be the basic value of securities law as investors lack knowledge about invested companies, Xiao said.

The chairman suggested amendments consider ways to protect investors, such as a system of public interests litigation and forced securities buy-back in case of fraud during issuance or sales, as well as compulsory fulfillment of obligations.

He added that securities law should be able to stimulate the market's vitality and push for unified supervision on different types of securities markets.