The China Securities Regulatory Commission (CSRC) will enhance market liquidity, reduce unnecessary interference in trading, and create a level playing ground for investors and would guide most long-term capital into the markets, it said in a statement on Tuesday.
The regulator also said it would encourage share buybacks and mergers & acquisitions by the listed firms.
The comments seem to have put a bid under the Chinese stocks. At press time, the Shanghai Composite is trading at 090 percent, having reported a 0.20 percent drop in early trade.