NEW regulations released last weekend about trading in A shares in Shenzhen and rumours about bonus share issues have quieted down China's two markets.
The Securities Commission released new regulations to limit speculators from cornering the market.
Brokers said it appeared that companies with market capitalisation of more than 30 million yuan (about HK$40 million) would be limited on the bids they could make in the market.
''We're going to see the markets really quiet down this week,'' said Ms Alice Lau, head of China research at Standard Chartered Securities.
Adding to the caution in the market were worries about when bonus shares and dividends would actually be distributed.
The Credit Lyonnais Shanghai A share index lost 152.25 points, or 1.99 per cent, to finish at 7,489.66. The B index was also lower, dropping 56.92 points or 5.13 per cent.
