BEIJING, Nov. 21 -- China's top securities regulator on Monday detailed the construction of a modern capital market with Chinese characteristics.

Efforts should be made to grasp the logic of valuation for different types of listed companies, and to explore ways to build a valuation system with Chinese characteristics so that the market plays a better role in resource allocation, Yi Huiman, chairman of the China Securities Regulatory Commission, said at this year's Financial Street Forum annual conference.

Yi said that one of the key features and advantages of China's capital market is the structure of listed companies, which covers multiple ownership types, all industrial categories and companies of all sizes.

He called on listed companies to boost their core competencies while strengthening investor relations management.

Noting that over 95 percent of shares on the A-share market are held by domestic investors, Yi said institutions should be more independent in their decision-making and research, and avoid following market trends blindly.

On investor structure, Yi said the proportion of institutional investors in both shareholding and trading has been increasing steadily, while the proportion of individual investors in trading has gradually declined to around 60 percent, which is a positive trend.

He said there would be another three-year campaign to improve the quality of listed companies, and close attention would be paid to the challenges faced by the real estate sector.

Yi also pledged efforts to promote the reform of and innovation in the National Equities Exchange and Quotations, also known as the "new third board," and to push for the high-quality expansion of the Beijing Stock Exchange.