BEIJING - In an effort to strengthen supervision of listed companies, China's securities watchdog has announced a strong crackdown on illegal practices such as compiling and reporting false financial and accounting information.

Practices including lying, accounting frauds, and illegal guarantee must be severely punished, Yan Qingmin, vice-chairman of the China Securities Regulatory Commission, said at a meeting.

The commission will improve the system of rewarding informants and use it as an important way to cleanse the capital market, so that more market participants can actively play the role of social supervision, Yan added.

Listed companies should seek progress while maintaining stability, and take the lead in promoting high-quality economic and social development, Yan said.