China vows 'zero tolerance' over capital market violations

China's financial regulators will have "zero tolerance" over illegal activities in the country's capital market such as fraudulent securities issuance and financial fraud, officials said at a key meeting on Saturday.

China should take multiple measures to enhance the enforcement of laws and regulations in the securities sector to maintain a healthy and stable capital market environment, according to a Saturday meeting of the Financial Stability and Development Committee of the State Council.

Presided by Vice-Premier Liu He, who is also a member of the Political Bureau of the Communist Party of China Central Committee and head of the State Council committee, the meeting pledged severe punishment for major capital market violations.

A number of financial fraud cases have occurred as a result of low costs in capital market violations, calling for institutional improvements to curb such activities, the meeting said.

The China Securities Regulatory Commission will work together with other relevant departments to set up a task force aimed at cracking down on illegal activities in the capital market, the meeting said.