Chinese authorities on Thursday announced that they will look into allegations that the recent losses suffered by the stock market may have been caused by price manipulations conducted by some unknown people or organizations.

CNBC reported that the China Securities Regulatory Commission (CSRC) has initiated a probe into the allegations that "illegal manipulations" may have a hand in the recent upheaval in the Chinese stock market. CSRC spokesperson Zhang Xiaojun announced on Weibo that any evidence they uncovered will be handed over to the proper authorities.

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Stocks in the Shanghai Index have fallen in value again as nervous investors went into selling mode in the early trading hours of Friday. The series of confidence-building measures brought in by the Chinese government did not impress the market, according to Market Watch. Some of the measures include easing margin debt rules and reducing interest rates on deposit and loans

As of Friday morning, the Shanghai Composite lost almost 7 percent in value. The Shanghai Index has now lost around 30 percent from its June 12 value.

Central bank governor, Zhou Xiaochuan, has assured investors that his office would do its part to keep the Chinese stocks safe from adverse forces coming from inside and outside the market.

Stocks in the Hong Kong market were also affected by the weak performance of its mainland counterpart. The Hangseng has lost around half a percent in trading after a slight gain earlier.

While stocks of many Chinese companies are suffering from the continuing losses in their value, some of them made modest gains on Friday. Casino companies in Macau such as Sands China and MGM China Holdings are currently in positive territory in today's trading.

Meanwhile, Bloomberg Business reported that 28 Chief Executive Officers (CEO) of various technology companies who are on the ChiNext index have promised to uphold the prices of their stocks. They said that they will suspend issuing additional shares and would buy back their stocks in the market.

The ChinNext stock index lost around 33 percent of its value from its previous highs on June 3. As of Friday, July 3, the index rose by at least 4 percent.

TagsShanghai Composite Index, ChiNext, People's Bank of China (PBOC), China Securities Regulatory Commission (CSRC), Chinese Stocks Plunge, China Stock Manipulation