(XINHUA)

Xiao Gang, head of the China Securities Regulatory Commission (CSRC), vowed to establish "proactive" legislation and law enforcement for the rapidly changing capital market. In an article published in Party-run Qiushi Journal, Xiao said penalties for malpractice will increase and cooperation with law enforcement personnel will be strengthened. Meanwhile, larger incentives will be offered to whistleblowers and compensation for victims will increase.

His remarks come as capital market crimes in China are becoming increasingly sophisticated, involving not only the management of public companies and brokerages, but also financial institutions and government officials.

Xiao, 55, became head of CSRC in March.