Top financial regulators vow support to stabilize stock market

The heads of the nation's three major financial regulatory authorities on Friday vowed their support to bring back confidence in the stock market, a rare step that came after the stock market tumbled to record low.

Yi Gang, head of the People's Bank of China, said in a statement that the recent turmoil has been mainly driven by investors' sentiment and expectations.

He said local governments' measures to ease liquidity risks "are encouraged," and central bank plans to roll out more steps to help reduce financing difficulties of companies.

Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission, said the recent performance in the stock market did not reflect economic fundamentals.

More efforts will be taken to bring the financial market back to normal, he said.

Liu Shiyu, head of the China Securities Regulatory Commission, said the government will encourage local governments and venture capitals to establish new funds to help ease financing woes of companies with high pledged shares.