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China stock exchange introduced tougher delisting rules

China’s stock exchanges in Shanghai has published new rules on delisting companies involved in fraud or other illegal activities in efforts to improve corporate governance in the world's second largest economy.

The Shanghai Stock Exchange said in a statement on Friday that the new rules set stricter procedures related to suspension or delisting after the government pledged to clean up the corporate sector to improve the quality of listed companies and securities regulator amended rules on the criteria for delistings in July to beef up corporate governance.

The new rule come amid investors' long-time complaints over a flawed system for delisting unqualified firms, which become even louder while regulators strive to push for more and easier listing to help companies get financing.

On the same day, the Shenzhen Stock Exchange announced its decision to start the process of delisting the Changsheng Biotechnology, the Chinese vaccine maker fined 9.1 billion yuan after it sparked public outrage in a fake vaccine scandal.

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