Quality of listed firms is the key to market reforms

Regulators' efforts to enhance the quality of listed firms will give a major boost to China's supply-side reforms in the financial sector and the country's quality growth story.

Yi Huiman, chairman of the China Securities Regulatory Commission, the top securities regulator, has recently talked of persuading more firms with strong fundamentals to go public on the A-share market. The regulator will also expedite clearing out of listed companies with low development capacities.

This encouraging and timely statement has helped shore up confidence in the A-share market, which has been weighed down by recent backward steps in China-US trade talks.