A senior Chinese lawmaker urged an improvement of the overall quality of the listed companies in China's stock market by adding new clauses on delisting unqualified companies.

When lawmakers discussed the amendment draft of the Securities Law during an on-going legislative session Monday, Cheng Siwei, vice chairman of the Standing Committee of the 10th National People's Congress, said although great importance is attached to the recovery of the stock market in the undergoing state share reform, it still tops the work agenda to improve the overall quality of the listed companies.

"In Western countries, the number of listed companies decreased in bear market, however in China, the number of listed companies was still on the rise even in the market with falling prices, because Chinese stock market lacked a fine delisting system," he said.

Only allowing those poorly managed listed companies to exit stock market at an appropriate time, and allowing the profitable companies to refill the stock market, could the overall quality of the listed companies improve and the confidence of investors boost, he said.

Therefore, Cheng suggested the amendment draft of the Securities Law could add some new clauses to allow companies enter and exit stock market more freely.

Source: Xinhua