The securities regulator is supportive of companies that seek foreign listings, Xinhua said citing recent comments from the agency’s Chairman Yi Huiman. Companies with variable interest entity structures can also seek cross-border listings CNBC reported citing a person familiar, adding that Chinese companies will be allowed to IPO in the U.S.

“What this shows is that there isn’t an intention to unilaterally destroy business models and businesses which are fundamentally aligned to the party’s priorities for China’s development,” said Adam Montanaro, a London-based emerging-market fund manager at Aberdeen Standard Investments.

The step gives reassurance that the tutoring industry decision was a unique case and “should slowly begin to restore confidence if they can convince the market that the regulatory developments are not an attack on profitable enterprises,” he added.

China’s CSI 300 Index rebounded from early losses on Wednesday to close with a 0.2% gain. Banks, viewed as prime targets for intervention because of their heavy weightings in benchmark indexes, were among the biggest contributors to the advance.

Chinese stock-index futures extended gains in late Hong Kong trading after Bloomberg reported the CSRC meeting, rising 4.5%. The Nasdaq Golden Dragon China Index, which tracks Chinese stocks listed in the U.S., jumped 9.3% in its biggest rally since November 2008. The CSRC didn’t respond to a request for comment.

Wednesday’s reprieve followed a three-day plunge that erased nearly $800 billion of Chinese equity value, spilling over into everything from the yuan to the S&P 500 Index and U.S. Treasuries during one of its most extreme phases on Tuesday.

The losses were triggered by China’s shock decision to ban swathes of its booming tutoring industry from making profits, raising foreign capital and going public. It was the government’s most extreme step yet to rein in companies it blames for exacerbating inequality, increasing financial risk and challenging the Communist Party’s grip on key segments of the economy.

Chinese authorities have a long history of attempting to smooth swings in domestic markets, though their efforts have had mixed success in recent years. They’re taking action now after the plunge in U.S.-listed tutoring companies like TAL Education Group and New Oriental Education & Technology Group Inc. spread to nearly every corner of China’s onshore equity market.