The plunging equities market showed sign of stabilizing on Thursday as a series of government initiatives designed to halt the panic sell-off starting last week appeared to be having an effect.

The Ministry of Public Security said it is working with the China Securities Regulatory Commission to investigate the short selling of stocks during the decline, believed to have been used to manipulate the market.

The ministry vowed to crack down on illegal trading and rumor mongering that jeopardize market order.