SHANGHAI, March 15 (Reuters) - China published a set of

rules on Friday that would tighten scrutiny over stock listings,

public companies and underwriters, as regulators ramp up efforts

to revive investor confidence.

Regulators will vet initial public offerings (IPOs) more

closely, crack down hard on securities fraud, and encourage

listed firms to increase dividend payouts and buy back shares.

The goal is to make China's capital market "safe, regulated,

transparent, open, vivid and resilient," Li Chao, vice chairman

of the China Securities Regulatory Commission (CSRC), told a

press conference in Beijing.

China's stock market has rebounded from five-year lows hit

in early February, after Beijing appointed veteran regulator Wu

Qing as new CSRC chairman.

Under Wu, the watchdog has taken a series of market-friendly

measures, including tighter regulation over computer-driven

"quant" funds and fresh curbs on short-selling.

The CSRC, which has already slowed the pace of public share

sales, said on Friday it will further strengthen supervisions of

company listings.

IPO applications will be strictly vetted to prevent

companies from excessive fundraising, while accounting fraud and

false statements will be severely punished, according to the

rules.

In addition, the CSRC will adopt "counter-cyclical

adjustment" in the IPO market to take into account supply and

demand in the secondary market, and will also boost onsite

inspections on listing candidates.

China's benchmark CSI 300 Index is up 4% this year

but is still 40% down from a peak hit in 2021, pressured by a

slowing domestic economy, a deepening property crisis, capital

outflows and rising political tensions with the West.

'TEETH AND HORNS'

The CSRC on Friday also published rules to step up

supervision of listed companies, vowing to protect investors

with "teeth and horns".

The regulator said it would crack down on securities fraud

as well as accounting manipulation such as what is known as "big

bath" - in which a company's management makes poor results look

even worse in order to make future performance look better.

The CSRC will also prevent big shareholders from reducing

holdings illegally, for example via short-selling.

In addition, the CSRC urged listed companies to increase

dividend payouts and take concrete measures to strengthen market

value management.

Listed companies are encouraged to buy back shares, and

constituents of main stock benchmarks are required to draw up

plans for stock purchases in the event of share price slumps.

To promote healthy development of brokerages and mutual fund

companies, the CSRC also warned against money worship,

extravagance, hedonism and "showing off wealth".