The Chinese securities regulator said on Tuesday it will improve the circuit breaker mechanism, seeking to allay investors' concerns after Monday's plunge triggered an unprecedented trading halt in equities, index futures and options.
Before the market opening, Deng Ge, the spokesman of the China Securities Regulatory Commission, said in a statement that the regulator will continue to improve the system based on real market operation.
"It is a gradual process for the market to adapt to the circuit breaker system, which is designed to cool the market and to protect the interests of smaller investors," Deng said.
The regulator also said that it will soon release a set of new rules to better regulate share sales by major shareholders of listed companies and to prevent it from causing volatility in the market.
The regulator's ban on major shareholders from selling their stock holding will expire on Friday, which has been seen as one of the triggers of Monday's sell-off.
The Chinese stock market bounced back from a lower opening on Tuesday. The Shanghai Composite Index rose by 0.16 percent to 3301.12 points as of 10:15 am in the morning trading session.
