A daily trading limit for the CSI 500 index will be effective from Tuesday, the latest action by China's financial regulators to prevent more losses.

China Financial Futures Exchange (CFFEX) said Monday night that it would limit investors' daily purchases of CSI 500 index futures to 1,200 lots for rise and fall.

CFFEX added that it would step up efforts to investigate illegal market activities.

The stock market showed signs of stabilization on Monday after being stuck in the doldrums for three weeks. The benchmark Shanghai Composite Index advanced 2.41 percent to finish at 3,775.91 points.

A raft of supportive measures introduced during the weekend was behind Monday's rise.

Twenty-one major securities brokers promised to spend no less than 120 billion yuan (19.62 billion U.S. dollars) on exchange traded funds (ETF) that track the performance of blue chip stocks.

Twenty-eight Chinese companies, which had obtained permission for IPO, announced they would postpone share issuance.

Central Huijin Investment Co., the investment arm of the central government, announced it had purchased ETFs and would continue to do so.

China Securities Finance Co.(CSF) said it would raise funds through multiple channels and expand its business scale to help stabilize the market. The central bank also committed to providing liquidity to CSF.

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