China is set to strengthen its trading error supervision and risk prevention mechanism in its stock market.

At an online press conference held Sunday on the Twitter-like social network Sina Weibo, the Shanghai Stock Exchange said China needs effective risk prevention methods to detect and stop erroneous trading before transactions are completed.

The Exchange made the response after a computer system malfunction was identified as the cause of Everbright Security's "fat finger trade" incident earlier this month. The notorious error caused the Shanghai Composite Index to jump 5.6 percent in a matter of seconds on Aug 16.

China's top securities regulator said on Friday that an investigation into the case had been completed, with a final decision to be released soon.