Shares in Shanghai fall by more than 5%

Various media reports have revealed that Shanghai shares fell more than five percent on Wednesday morning, extending their largest daily fall in more than three weeks due to concerns of waning government support.

The Associated Press reports that the benchmark Shanghai Composite Index dropped 5.04 percent, or 188.74 points, to 3,559.42 during the morning session.

According to the reports, the Shenzhen Composite Index, which tracks stocks on China's second exchange, was down 5.17 percent, or 112.50 points, to 2,061.92.

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Chinese shares have been highly unpredictable in recent months, dipping more than 30 percent in a matter of weeks after June 12, despite rising over 150 percent in the preceding 12 months.

The government has launched broad-based intervention efforts in an attempt to shore up the declines, which have sent ripples through regional markets.

Some of the measures have included barring "big" investors from selling their stakes and a crack down on short-selling -- when investors bet prices will go lower.

However, slowing growth and a surprise double currency devaluation last week -- seen as an attempt to boost stalling exports -- have weighed on sentiment, despite the market regulators promise on Friday that it will stabilise stock prices for a number of years.

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"Some investors are worried that the government would pull out before the market is fully stabilised," general manager at Shanghai Zhaoyi Asset Management, Li Jingyuan, told Bloomberg News. "For regulators, they think these measures have already achieved some effect in saving the market."