BEIJING/SHANGHAI, Jan 6 (Reuters) - China's foreign exchange regulator said on Wednesday it will avoid disorderly fluctuation in the currency market in 2021.

The State Administration of Foreign Exchange (SAFE) said it will also improve capital management of foreign institutions' onshore equity and bond issuance, while encouraging financial institutions to introduce more FX derivatives to meet market demand.

(Reporting by Beijing Monitoring Desk and Winni Zhou; editing by Andrew Heavens)