Chinese shares jump 1.75 percent in morning trade

Chinese share prices jumped 1.75 percent in Monday morning trade after the securities regulator issued new rules to boost sentiment, dealers said.

The China Securities Regulatory Commission issued rules Sunday placing curbs on the sale of non-tradable shares that come out of lock-up periods.

The move was addressing market concerns over a flood of shares coming into the secondary market after a shareholding reform, which could "put constant pressure on stock prices and distort the price formation mechanism," it said.

"The restrictions show that the securities regulator will start 'rescuing' the market when the key index falls to around 3,000," said Zhang Gang, an analyst at Central China Securities.

"However, it's hard to say the market will bottom out, as investors' biggest concerns are still about macroeconomic controls," which the government is imposing to keep inflation at decade highs in check, Zhang added.

The key index has been cut nearly in half since a peak in October 16 last year.

The Shanghai Composite Index, which tracks yuan-denominated A shares and hard-currency B shares, jumped 1.75 percent, or 54.28 points, to 3,148.94 at 11:30am.

Gainers in the Shanghai market outnumbered losers 643 to 192, while 19 were unchanged.

The Shenzhen Composite Index, which covers the mainland's smaller stock market, was up 1.21 percent, or 11.22 points, to 941.85.

The Shanghai A-share index gained 56.75 points or 1.75 percent to 3,304.18 points, while the Shenzhen A-share index was up 11.29 points or 1.16 percent to 987.48.

(Agencies)