This undated file photo shows signboards of Chinese and foreign banks, companies and other financial institutions in the Lujiazui financial district in Pudong, Shanghai. (PHOTO / IC)

China will create conditions to promote the Sino-US cooperation in audit supervision and pay more attention to market communication over the remainder of the year, the country's top securities regulator said late Friday.

The CSRC said it will seek to deepen the connectivity of the mainland and Hong Kong markets, firmly supporting the steady development of the capital market in Hong Kong

"We will strengthen communication with the market to stabilize policy expectation and institutional environment," the China Securities Regulatory Commission said in a statement after it finished a mid-year meeting that outlined key regulatory tasks for the second half of 2021.

Moreover, the CSRC will unveil policies to further open the capital market, coordinate development with safety, and strengthen regulatory capacity to better fit the condition of market openness in the second half, the statement said.

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The commission will seek to deepen the connectivity of the mainland and Hong Kong markets, firmly supporting the steady development of the capital market in Hong Kong.

More efforts will be made to prevent and defuse the spillover of external risks, domestic risks in key areas like private funds and bond defaults, and any secondary risks sparked by the process of resolving other risks, according to the statement.

In a meeting on financial and economic affairs held earlier this week, China's leadership said that finance is the core of the modern economy and underscored coordinated efforts to fend off major financial risks in line with market principles and the rule of law.

With Xinhua inputs