In a speech at the annual work meeting of the China Securities Regulatory Commission on Friday, Liu Shiyu, the commission chairman, said no one will be allowed to create "wind and rain" in the stock market and vowed to capture those who suck the blood of small investors.

Liu's remarks came only two months after he condemned the aggressive buyouts of listed companies by those using speculative capital, who he described as "monsters" and "barbarians" in the market. The latest criticism is seen as fresh evidence of the top securities watchdog's resolve to tighten supervision over the domestic capital market and weed out illegal market activities. There is a need for the country to take effective measures to crack down on market manipulation and protect the interests of retail investors.

Although Liu did not offer a definite timetable for a much-anticipated registration-based system for initial public offerings, the securities regulator has revealed its increased resolve to maintain a normal pace for IPO approvals.

The regulator's recent efforts to strengthen the external restraints on mergers and acquisitions, including standardized management of financing channels, are much needed steps toward preventing capital tycoons from transferring their financial risks to ordinary investors.

The "shell game" between capital tycoons and listed companies with poor performance under the guise of so-called restructuring, mergers and acquisitions and other guises has proved to be a workable way of fuelling an investment rush among small investors who are consequently preyed upon.

Against the backdrop of the country's deleveraging efforts, a series of tightened supervisory measures by the securities watchdog to stop speculative behavior will be able to contribute to the establishment of a lasting and healthy capital market.