German regulators have welcomed measures in the government's proposed Financial Market Promotion Act, designed to improve investor confidence in the country's equity markets, especially the battered Neuer Markt.

Last week the all-share index of Frankfurt's high-growth market dipped below the psychologically important 1,000 mark for the first time since the month it was launched when it hit 997.25 on Thursday. The index started with a base value of 1,000 as of December 31, 1997. In comparison a year ago the same index stood at 5,669.23.