The Chinese government called on stockholders of publicly-traded companies to boost their holdings and some mutual funds to limit their stock selloff this week.
Informal directives were sent by the China Securities Regulatory Commission and other regulators.
The government asked brokerages to provide trading reports from last week and trading plans to the regulator.
Following the Wall Street plunge, global markets went down last week on the back of concerns over higher US interest rates.
Chinese shares saw the biggest decline in two years, thus prompting speculation that the government would intervene to calm markets as it did during previous selloffs.
Beijing’s ongoing commitment to reduce debt has also weighed on the markets.
The Shanghai Stock Exchange said that it issued warnings about limiting intraday trading in order to prevent large stock sales that affect the market stability.
On Monday, the Shanghai Composite Index rose by 0.78%, while the Shenzhen Composite climbed by 2.4%.
