China's State Council on Friday issued opinions on further improving the quality of listed companies, as the latest efforts to step up supervision and maintain the steady and healthy growth of the capital market.

The capital market's role as the main channel for mergers, acquisitions, and reorganization should be fully utilized to encourage listed companies to revitalize their stocks and improve quality and efficiency, according to the opinions.

It said the country would strengthen the penalties for fraudulent issuance, illegal information disclosure, market manipulation, insider trading, and other illegal activities.

The country will also enhance the cooperation between administrative agencies and judicial agencies to realize the rapid transfer and investigation of criminal cases and investigate and punish illegal and criminal acts in an effective way.

Meanwhile, delisting standards will be improved, and delisting procedures simplified. The country will enhance delisting supervision and severely crackdown on malicious evasion of delisting through financial fraud, transfer of benefits, market manipulation, etc.

It will also intensify the accountability of entities that violate laws and regulations to protect investors' legitimate rights and interests in accordance with the law.

For example, Chinese regulators have penalized Luckin Coffee with a combined fine of 61 million yuan ($9 million) after confirming accounting fraud that has already forced the company to delist from the U.S. Nasdaq exchange.

The country has also conducted related reforms in the capital market in recent years, such as the reform of the sci-tech innovation board, the pilot registration-based IPO system, the reform of the "new third board", and the delisting mechanism.