SHANGHAI'S key stock index, which suffered the steepest drop in more than 11 years last week, may gain some relief after the regulator limited the sale of previously non-tradable shares.

The China Securities Regulatory Commission announced stricter rules last night on the sale of such previously non-floating shares, a market-boosting move which could avoid huge influx of fresh equities onto the exchanges.

The Shanghai Composite Index, which tracks yuan-denominated A shares and hard-currency B shares, plunged 11.4 percent last week to end at 3,094.67, or only about half of the peak level it hit in October last year.

The National Bureau of Statistics said last Wednesday that China's consumer price index rose 8.3 percent in March, near a 11-year high.

Zeng Xianzhao, an analyst at Everbright Securities, forecasts the index may move between 2,800 and 3,200 this week. Analysts see technical support at around 3,000 points. Orient Securities analyst Mo Guangliang expects the index between 2,950 and 3,400 this week.