On Jan 15, the commission started field investigations targeted at 13 principal underwriters and 44 book-building participants of recent initial public offerings. That process has now ended.

Restart of IPOs

Protecting small investors

The commission may also introduce a settlement system to better compensate investors who suffer losses caused by illegal practices such as insider trading or making false statements, said Xiao Gang, its chairman, in an article published on Wednesday.

"During the period of transition, the commission will fully implement the reform plan on new listings and make the whole process of IPO examination and approval public," said Deng.

"A registration-based IPO system cannot be accomplished in one action. Government interference is necessary when the mechanism is not complete," said Hong Hao, managing director and chief strategist at BOCOM International Holdings Co Ltd.

Hong told China Daily the reform plan on new share listings will encourage more institutional investors to buy, which is good for the market. New-share pricing after the Aosaikang case is low, a situation which should be improved, he added.

The spokesman also said on Friday the commission will submit relevant evidence and cooperate with the investigation to review whether its recent rules on insider trading should be repealed.

"The China Securities Regulatory Commission reached the rules based on facts and we respect supervision from the court," said Deng.

Beijing First Intermediate People's Court accepted on Tuesday the case in which Yang Jianbo, former general manager of the strategy department of Everbright Securities Co Ltd, filed a suit against the commission, contesting the punishment he received.

"It's Yang's right to seek legal proceedings and it's the commission's obligation to maintain strict supervision," said Deng.

Dai Tian contributed to this story.

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