BEIJING, Aug. 14 -- China's securities watchdog has stressed that the national margin trading service provider, whose liquidity injection has been crucial in stabilizing the country's stock market, will maintain funding in the coming years.

China Securities Finance Corporation, Ltd. (CSF) will hold its shares and stabilize the market when it fluctuates dramatically, said Deng Ge, spokesperson for the China Securities Regulatory Commission (CSRC), on Friday.

There has been great concern about CSF pulling money out of the stock market, despite official reassurances to the contrary.

Deng said CSF has transferred some shares to Central Huijin Investment Co., Ltd., an investment arm of the government.

China had one of the world's best-performing stock markets earlier this year, with the benchmark Shanghai Composite Index rising more than 150 percent in 12 months, partly fueled by margin trading. However, the index lost more than 30 percent in less than a month from a June 12 peak, as margin traders unwound positions and some investors cashed out.

The market has shown signs of recovery on the heels of rescue measures, including major brokerages putting their own capital on exchange-traded funds tracking the performance of blue chip stocks, and China's central bank supporting the liquidity needs of CSF to increase share purchases and offer brokerage houses liquidity aid.

On July 9, the CSRC announced that CSF will provide liquidity to buy public offerings of fund and inject liquidity to fund companies, in a move intended to boost investor confidence.