Regulation of listed companies and securities firms will be based on the location they go public and gain business licenses under a pilot program of cross-market stock investment by Chinese mainland and Hong Kong investors, the China Securities Regulatory Commission said on Friday.

When security firms help in cross-border investments, the outbound regulators can also regulate the trade, said the commission.

"Regulators at the locations where investors undertake trading will protect their interests," said Zhang Xiaojun, a commission spokesman.