By Jonathan Davies

Shares in China continued their volatile trading on Thursday, recovering from early losses to close 5.76% higher.

The Chinese government moved to ban big investors from selling stocks, which had been tipped as the reason for recent volatility. Shares on the Shanghai Composite have fallen by 30% since mid-June.

On Wednesday, share prices fell 8.2%. Some market analysts described it as "Black Wednesday".

State news outlets also reported that police were investigating "vicious short-selling" on the country's stock markets.

Xinhua, China's government controlled news agency, said authorities would "crack down" on illegal activities that broke trading rules and regulations.