Shares in mainland China continued to slide Tuesday after historic sell-off the previous day.
Shanghai Composite go down by 4.3% to 3,567.38 points in early trade after the index on Monday saw its biggest drop in eight years by 8% in one day.
China tried to calm investors, assuring them that they will implement prudent monetary policy to stabilize markets.
The central bank said it would inject 50 billion yuan (£ 5.2bn; $ 8.05bn) in cash markets.
People's Bank of China also said that the economic fundamentals of the country are constantly improving.
The regulatory body CSFC officially announced that there will be strict measures on short sales.
All malicious trading practices will be investigated and severely punished, CSFC warned in a statement.
But analysts are hesitant to refer with great confidence to those measures.
In Hong Kong Hang Seng Index fell 0.5 percent to 24,229.47 points in early trade.
The index of the largest stock exchange in Asia, the Nikkei 225 index reached 20,123.70 points.
Australian shares followed the trend in the region, falling by 0.9 percent to 5,542.20 points.
China is a major market for Australia and the dramatic volatility in Chinese shares and slowing growth indicators probably affect investor sentiment.
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