Shanghai is the world's worst performing major stock market of the year and is expected to register further falls as trade tensions are revived.
The Shanghai Composite Index has tumbled by 19pc this year, and reached levels close to four year lows, Agence France-Presse reports.
The Chinese regime’s crackdown on liquidity, rising trade tensions and the country’s economic slowdown are leading many observers to fear there is no bottom in sight yet, however.
The falling market is causing considerable concern for the regime.
A state think tank has tried to talk up the low stock valuations in order to entice buyers.
“Value has emerged in the stock market,” one think tank said.
In June a leaked report from government think tank the National Institution for Finance & Development said there was a risk of “financial panic” amid bond defaults.
“There’s little hope for positive momentum until China’s economy revives or it reaches a trade truce,” said Brock Silvers of Kaiyuan Capital.