Chinese securities regulator to enhance market liquidity, encourage share buybacks

  • The China Securities Regulatory Commission will encourage share buybacks and mergers and acquisitions by listed firms, it said in a statement on Tuesday.
Investors observe stock market at an exchange hall on January 6, 2016 in Beijing, China. 
VCG | Getty Images News | Getty Images
Investors observe stock market at an exchange hall on January 6, 2016 in Beijing, China. 

China's securities regulator will encourage share buybacks and mergers and acquisitions by listed firms, it said in a statement on Tuesday responding to market concerns about recent sharp moves in markets.

The China Securities Regulatory Commission also said it will enhance market liquidity, reduce unnecessary interference in trading, and create a level playing ground for investors.

It added it would guide more long-term capital into the markets.