China will further expand market access of foreign funds into the nation's securities industry and encourage Chinese cross-border businesses, Yao Gang, vice-chairman of China's securities regulator, said on Friday.

"By good institutional arrangements, the Chinese securities industry will be comprehensive, comprised of State-owned, private and foreign companies," Yao told a forum in Beijing.

Yao said private capital can set up securities firms and market access to foreign funds will grow. State-owned securities companies are encouraged to enter into mixed ownership reform and social security funds. Enterprise annuity managers will be supported in setting up securities firms.