China^s regulators are taking fresh steps to try to quell volatility in the country^s financial markets. (10 July 2015)

The BBC reports that investors holding stakes of more that 5% aren’t allowed to sell shares in the next six months. This new rule from the country’s securities regulator is intended to relieve pressure on China’s stock markets.

Despite efforts to stem the losses, the sell-off in China’s main stock market continued on Wednesday, with the Shangai Composite plunging 6.8% which took share values nearly 30% below their June peak.

On Wednesday, another 500 listed firms said they would stop trading their shares in an attempt to insulate themselves from the meltdown. In total around 1,300 firms have halted trading, almost half of China's main shares.

IG chief market strategist Chris Weston dubbed the sell-off "Black Wednesday".

"For the first time, The China Insurance Regulatory Commission (CIRC) has admitted there is genuine 'panic selling' underway.

"When we see around 90% of the market suspended or falling by their daily limit (while further measures have been taken to limit the influence seemingly exerted by futures traders) you know things are becoming less rational," he said. Chinese regulators made a string of pledges on Wednesday to try to ease the "panic sentiment" in the market.

The Cabinet agency that oversees China's biggest state-owned companies said it had told them not to sell shares and to buy more "in order to safeguard market stability". The CIRC pledged to make more money available to brokerages from its state-backed margin finance firm.

Investors in China rely heavily on margin financing from these brokerages to borrow money to buy stocks. Insurers were also given the go-ahead to invest more in blue chip stocks - with the industry watchdog raising limits from 5% of their total assets up to 10%.

The official intervention did little to reassure investors. The Shanghai Composite closed down 5.9% at 3,507.19, having fallen as much as 8.2% during the session. Hong Kong's Hang Seng index dropped 5.8% to 23,516.56.

Markets in the rest of Asia were also lower, with Japan's Nikkei 225 index closing down 3.1% at 19,737.64. In Australia, shares fell as the price of iron ore - one of its biggest exports - fell almost 6% to a three month low. The benchmark S&P/ASX 200 index closed down 2% at 5,469.53.

South Korea's Kospi index fell 1.2% to 2,016.21 ahead of the central bank's decision on interest rates on Thursday.

Duncan Lewis Immigration Solicitors - Tier 1 Investor Visas

If you are a high net worth individual seeking to invest in the UK from China, under the Tier 1 Investor visa you must establish the following:

· You have access to £2,000,000 which is held in a regulated institution; and

· The money is under your control and disposable in the UK.

You are not permitted to utilise loaned funds as evidence of your investment capital and the UK authorities will also need to see the source of your funds.

You must also invest the total £2,000,000 funds in qualifying investments such as UK government bonds, share capital or loan capital in active and trading UK registered companies.

Under the rules you are not permitted to invest in companies mainly engaged in property investment, property management or property development. It is vital that any investment is made within the first three months of your arrival to ensure that you remain compliant with the rules:

Our privateimmigration@duncanlewis.com.