Promising to float stocks at a premium means if companies want to sell more stocks, they must ensure their market prices are high enough. The move will give public investors a bigger say in the share sale issue.
With the indexes edging up, retail investors will gradually return to trading. Institutions such as insurers, pensions and overseas banks will restore interest in the markets, partly thanks to low pricing and the country's economic boom.
Optimism abounds on the market. Retail investors expect an influx of funds from institutions and the government to lure overseas-listed blue chips back to mainland markets.
The government is delivering a message that anyone who hurts the interests of small investors will be punished. With regulatory controls now enhanced, minority stockholders are expected to get more protection.
The regulator is moving toward a more market-oriented mechanism for company stock sales.