China Securities Regulatory Commission (CSRC) has tried several shareholders for illegally selling their stocks in the height of the market slowdown in the past few months.

In July, the commission ordered major shareholders in the country to desist from selling their stock holdings for at least six months. Investors, who own up to five percent of the shares in either state-owned or private companies, were particularly banned from reducing their holdings.

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According to Xinhua, the commission has investigated more than 40 cases of suspected illegal offloading of shares. All suspects in the 11 cases brought to trial this past weekend pleaded guilty to the charge levelled against them. However, they claim that their actions did not affect the stock market and asked the court for leniency.

Chinese regulators have stepped up their efforts to combat market irregularities as a way to curb the recent downturn.  Last week, China's two main stock exchanges - Shanghai and Shenzhen - released draft regulations to control automated trading. The proposed legislation said that should automated trading create disruptions in the market, authorities in the Shanghai Stock Exchange will intervene and either limit trading on the offending accounts or temporarily ban them from trading.

In July, the Shanghai stock market lost about 30 percent of its value within 24 hours. This prompted many shareholders to put their trading on hold in order to cut further losses. The volume of trading in China's stock market has dropped by about 70 percent since then.  

Trading in China's stock market could remain low for some time to come, according to The Wall Street Journal.

During the recent International Monetary Fund (IMF) and World Bank meeting in Peru, the deputy governor of the People's Bank of China (PBOC) Yi Gang revealed that China's stock market correction is "almost over." According to Yi, authorities took several steps to mitigate the effects of the stock market correction on China's economy.

China's stock indexes responded positively to this announcement on Monday, as well as news of the central bank's new lending programme and speculations that the government is set to bolster the market by investing. The Shanghai Composite Index closed Monday trading at 3,318.7 - up by 3.3 percent. Meanwhile, the Shenzhen Composite Index and the CSI300 Index closed at 1,886.34 and 3,458.08 - increasing by 3.2 percent and 4.2 percent respectively.

TagsChina Securities Regulatory Commission (CSRC), China Stocks Selloff, China Stock Market Slowdown, Shenzhen Stock Exchange, Shanghai Stock Index