China's securities watchdog denied rumors on Tuesday that Chinese regulators had launched probes on companies in Xiaomi Corp's industrial chain or restricted such firms' listing plans.

The China Securities Regulatory Commission (CSRC) was responding to social media articles claiming regulators were stepping up scrutiny over Xiaomi-invested companies, some of which are seeking listings.

The CSRC said it would continue to vet initial public offering (IPO) plans according to relevant rules and regulations, saying it would treat all applicants fairly and keep policy expectations stable.

"We hope market participants don't believe in or spread rumors and work together to safeguard a sound market environment," the CSRC said in a statement.

Xiaomi, the Chinese smartphone maker, said in a statement on Tuesday it had launched a lawsuit in response to "fabricated and baseless rumors" online about its industrial chain and investment activities.