Market-stabilizing act

The introduction of the block trading system is a much-needed step to standardize sales of a large number of shares newly freed from the lock-in period. It shows that the securities authorities have fully recognized the negative impact that uncontrolled sales of such shares may have on the stock market.

Policymakers should take more such actions to plug loopholes underlying the regulatory system.

China Securities Regulatory Commission announced late Sunday that shareholders should use the block trading system while selling more than 1 percent of a listed firm's total shares within a month.