Bourses continue correction on expectations of stricter rules

Equities slumped on Wednesday in the Chinese mainland despite the rebound of the United States' market, with analysts saying that the domestic financial clampdown and deleveraging efforts could be driving the selling.

The stock markets in Shanghai and Shenzhen saw a short-lived rally in early morning trading, before the rebound faltered in the afternoon with a sharp decline in banking and property companies' share prices.

The benchmark Shanghai Composite Index was down by 1.82 percent to 3309.26 points at the close, while the Shenzhen Component Index dropped by 1.26 percent to 10246.97 points. The ChiNext Index, which tracks startup stocks in Shenzhen, managed to recover some of its losses on Wednesday, gaining 1.14 percent after hitting a three-year low in the previous day.