China's securities regulator on Thursday issued draft rules that would remove profitability requirements in merger and acquisition deals involving listed companies, as part of wider efforts to help corporate restructuring.

The China Securities Regulatory Commission will also ease funding channels for listed firms to improve their cash flows, and encourage companies in the high-tech sector and new strategic industries to restructure.

"This will further improve the quality of listed companies and boost market vitality," the regulator said on its website, adding that it is soliciting public opinions until July 20.

(With input from Reuters)