Market cheers new regulation on stake cuts

Mavens say measures will bring more stability, protect investor interests

China's stock market on Monday gave the thumbs up to Friday's new regulation comprising 31 measures to streamline major shareholders' reductions in their equity holdings, with the benchmark Shanghai Composite Index gaining 1.14 percent to close at 3124.04 points.

The Shenzhen Component Index and technology-focused ChiNext in Shenzhen, Guangdong province, added 0.88 percent and 0.68 percent, respectively. Market mavens said the new regulation is expected to bring more stability to the A-share market.

On Friday, the China Securities Regulatory Commission, the country's top securities watchdog, promulgated the new regulation with immediate effect to address frequently occurring problems in the A-share market.