The chairman of the China Securities Regulatory Commission pledged to speed up capital market reform and opening by improving protection of investors, a report released on the watchdog’s website said on May 20.

Xiao Gang, the CSRC chairman who took office in March, made the speech after a videophone conference hosted by Premier Li Keqiang to call on government function transformation.

"As the securities regulatory institution, CSRC will gradually and resolutely ease control in areas that shouldn’t be controlled, as long as legislation allows it,” Xiao said.

It is possible to modify the regulations if necessary, he added.

The key task of the CSRC will be transformed into strengthening its ability to protect investors’ interests and setting up efforts to punish illegal activities, the chairman said.

The Chinese capital market is “on an emerging and reforming stage”, which has great development potential, Xiao said.

"Now it has a great opportunity to deepen the reform and opening,” he said.