During a meeting on Saturday, Chinese stock brokerage firms have promised to pump at least $19.3 billion (roughly 120 billion yuan) of their own funds to help calm the stock market, which has lost almost a third of its value since the middle of June.

Bloomberg Business reported that 21 brokerage firms have decided to use 15 percent of their company's net assets to buy blue chips stocks in China's stock market.

Like Us on Facebook

Only when the Shanghai stock market grows by more than 4,500 points will they sell their stock investments. The firms also made a pledge to buy their outstanding stocks back from the market.

The Shanghai Index had fallen by almost 6 percent after Friday's trade.

Chinese authorities have issued a series of financial incentives in order to lure investors back to the market. Last Friday, regulators said that they will reduce the number of initial public offerings and issue rulings to favor long-term stock players, according to Reuters.

Since the middle of last month, China's stock market has experienced a loss of nearly $3 trillion (over 18 trillion yuan). As of Friday, only 39 out of the more than 1,000 listed stocks in the Shanghai market were able to advance. PetroChina stocks were among the ones that climbed in value due to rumors that state funds will be use to buy a sizable number of its shares.

The China Securities Regulatory Commission (CSRC) have announced that they are investigating into allegations of manipulation of China's stock market. Insiders mentioned that the regulators have so far put 19 accounts on suspension. These accounts were engaged in a month-long continuous short-selling of futures index, according to Business Standard.

At the same time, regulators have also eased several trading rules in order to reassure Chinese stock investors.

China's central bank has also made its own stock confidence building measure by lowering interest rates.

But these incentives have so far failed to calm worried investors, who continue to sell their stock holdings.

IG Asia strategist Bernard Aw said that Chinese authorities will have a very hard time reassuring investors with a very bearish view of the stock market.

TagsChina stock market, Shanghai Composite Index, People's Bank of China (PBOC), China Securities Regulatory Commission (CSRC)