The regulator is moving toward a more market-oriented mechanism for company stock sales.

Allowing brokerages to launch warrants at any moment in a trading day may help adjust the derivative's supply to meet its demand. It has been proven in Western markets as a good way to combat fluctuation.

After a five-year plunge, we'll finally wriggle out of the pattern this year. Funds are expected to flow into the market as the result of expectation that the stock shakeup will create a better investment scenario.

The move will help regulators deal with securities crimes more efficiently and help small investors protect their legal rights.

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.

Raising profit thresholds are in line with the regulator's pledge to help good-quality companies raise capital and upgrade market fundamentals. Investors will be glad to see the market shutting its doors to poor performers.

Regulators have picked out two points this year: encouraging fund inflow to the market and revving up studies of new derivative products. The index has a good chance to test 1,300 this week.

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.

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.