SHANGHAI, April 12 Reuters China39;s securities regulator issued draft rules to strengthen regulations on company listings, delistings and quant trading on Friday, in a move to improve the stock market and protect investor interests.

The China Securities Regulatory Commission CSRC strengthened delisting requirements to force unqualified companies to exit the market and vowed to step up efforts to audit delistings, according to draft rules that solicit public opinion.

To improve the quality of listed companies, the CSRC said it plans to moderately increase requirements for operating income and net profit for companies listing on the main board and techfocused ChiNext. It would also expand onsite inspection of companies under IPO review and related intermediaries.

The proposed rules come after China39;s stock market fell to fiveyear lows in February and authorities introduced a number of measures to revive investor confidence.

The CSRC also proposed stricter differentiated regulatory requirements for highfrequency trading to maintain fairness in the markets, by implementing additional reporting mechanisms and charging differentiated fees.

Chinese quant funds, which use derivatives and datadriven computer models, face tighter regulatory scrutiny. In February, the bourses barred a fund manager from trading for three days, saying it had broken rules on orderly trading.

Both domestic and foreign capital will be included in the transaction reporting system and be subject…