Statistics from Shanghai Securities News show 40 percent of stocks traded in Shanghai and Shenzhen have suffered more than 30 percent loss in the past month.

With the drop of investing sentiments, the number of newly-opened stock accounts also continues to shrink, dropping below 80,000 on Tuesday, the lowest figure since February.

Securities insiders believe that a short term recovery of the market can be expected in a day or two after the recent dive, but a declining trend of the indices is taking shape and investors should be full aware of risks of the market.

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