Despite growth moderation, China's top securities regulator has voiced strong confidence in the national economy, which he said is still one of the world's most promising.

The moderation in China's growth is a desired outcome of the government's macro-regulation, which will support sustainable and healthy development, Guo Shuqing, head of China Securities Regulatory Commission (CSRC), said in an exclusive interview with Xinhua.

Guo said his confidence was due to the country's huge market potentials as the government stepped up efforts to spur domestic demand to wean the the national economy off its reliance on exports.

China's growth in 2011 slowed. GDP grew 8.9 percent year-on-year in the fourth quarter, down from 9.1 percent in the third quarter, 9.5 percent in the second quarter and 9.7 percent in the first quarter.

However, the domestic market potentials will give China some strength to resist the adverse impacts of complicated and volatile global economic situations, according to Guo.

He noted that after over three decades of fast expansion, China now faces a pressing urgency to accelerate industrial upgrading and transform its development pattern.

The development pattern, which relies on high input, high energy consumption and high capital accumulation, has produced grave negative effects -- environmental degradation, inequality of wealth and increasing tendency towards protectionism abroad.

In the 12th Five-year Plan, the government lowered its annual economic growth target to 7 percent for the 2011-2015 period, in exchange for greater sustainability and improved quality of life for its citizens.

Guo, who has only been in the position a few months, said a sound economy and the acceleration in industrialization, urbanization, informatization and marketization processes will lay a solid foundation for the development of the country's young but vigorous capital market.

Guo, former board chairman of China Construction Bank, took the position last October during a reshuffling of several top financial officials.

Since Guo took the job, the CSRC has launched a series of reforms such as improving the delisting system for companies listed on the second board, requiring listed companies to pay dividends and working to eliminate illegal activities in the stock markets.

Speaking of the CSRC's priorities, Guo said the commission will focus on regulating the market order, making the capital market serve the real economy while supporting technological innovation and cultural industry development.

However, he indicated that dismantling the review procedures for initial public offerings will not be included in these priorities.