The China Securities Regulatory Commission on Friday released revised delisting rules to further strengthen the capital market and eliminate trash stocks.

"The rules can protect the fundamental functions of the capital market and make the delisting of domestic listed companies more market-oriented, governed by the law and subject to uniform procedures," said Zhang Xiaojun, a CSRC spokesman.

The regulator said the delisting system has been refined to provide a range of options for companies that are voluntarily seeking to exit the capital market.

Seven conditions under which companies can voluntarily delist have been defined, and the procedures in these cases are different from those for compulsory delisting.

In order to protect small and medium investors, the voluntarily delisting should be approved not only by at least two-thirds of all shareholders in the shareholder's meeting but by more than two-thirds of all small and medium shareholders, it said.

The statement also said that China would strictly implement the process of compulsory delisting.

Listed companies that have engaged in fraudulent practices and have been slapped with administrative penalties need to be delisted within a year, it said.

A specific period will be set for companies that are subject to compulsory delisting. In such cases, they can move their shares to the National Equities Exchange and Quotations, an over-the-counter market that is China's third bourse.

CSRC to tighten supervision on insider trading	Securities body to ease regulations