China's top securities regulator vowed on Friday to take all necessary steps to consolidate the positive momentum in the capital market, following signs of market recovery and improved investor sentiment, despite external challenges.

"The capital market has withstood greater-than-expected external shocks, with enhanced resilience and improving expectations," the China Securities Regulatory Commission said in a statement released after its mid-year work meeting.

While acknowledging the still complex domestic and international environment, the CSRC highlighted the certainty provided by China's high-quality economic development, predictable macro policies and the ongoing valuation recovery of Chinese assets — all of which offer a foundation for stable and healthy market operations.

"We will make all-out efforts to consolidate the market's trend of stabilization and improvement," the commission said, adding that it will further improve market stabilization mechanisms and enhance the effectiveness and foresight of market monitoring and risk response, while intensifying efforts to guide expectations.

Other priorities include implementing reforms for Shanghai's STAR Market, rolling out a package of measures to deepen ChiNext reforms, improving the investment value of listed firms and cracking down on capital market infringements, the CSRC said.