The chairman of China's securities regulator, Yi Huiman, said China will stabilize and reform its capital markets next year, state-backed Xinhua News Agency reported on Thursday.

Yi said China will reform its stock market next year to adopt a comprehensive registration-based IPO system, which is currently only adopted by the newly established Beijing Stock Exchange, ChiNext and STAR Market.

"The conditions to employ a comprehensive registration-based IPO system are gradually being met," Yi told Xinhua. "We are stepping up efforts to formulate a market-wide registration system reform plan ... to ensure its smooth implementation."

Yi also said China will accelerate the reform of its offshore listing system and strengthen its cooperation with international securities regulation.

In terms of regulation, the China Securities Regulatory Commission (CSRC) will step up scrutiny of fund raising and M&A activities in some sensitive areas, Yi told Xinhua.

He added that China will try to defuse debt default risks and eliminate their spillover effects.

Debt woes in China's $5 trillion property sector, including China Evergrande Group, is being widely watched by global financial markets concerned about broader contagion.