BEIJING (Sputnik) – The Shanghai Composite Index fell 0.29 percent to 3,745.65 points, while the Shenzhen Stock Exchange Composite Index dropped by 0.1 percent to 2,148.78.
The two stock exchanges announced the suspension of same-day transaction settlements for short-sellers, the practice of completing trades the day they are made, effective Tuesday.
Investors who borrow shares are now required to wait 24 hours before repaying the loans, exposing them to greater risk.
The discontinuations were announced to rein in the short-sellers, who were blamed for "abnormal fluctuations in share prices."
The Shanghai index closed with 3.7-percent gains on Tuesday following the announcement of tighter controls.
Shanghai, Shenzhen and Hong Kong together account for approximately $9.5 trillion of market capitalization, making them collectively the second largest stock market in the world.
