The China Financial Futures Exchange or CFFEX has suspended from short selling 19 accounts for a month, according to Reuters.
This is the latest move done by Chinese authorities as they try to contain the continued slide in the equities market, which has lost more than 20% since its June 12 peak.
China Daily on Friday reported that the China Securities Regulatory Commission will investigate suspected market manipulation and any criminal cases that will arise from the probe will the turned over to the police.
The Shanghai Composite Index ended the morning session down 3.3%, recovering from an earlier loss of more than 7%, according to Reuters. The index is on the way to an almost 10% weekly loss.
Analysts said the correction in the stock market will be good in the long-run as it will weed out speculators who are not that familiar with the complexities involved in trading and those who are after making quick profits.
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