The moves by listed companies followed hot on the heels of steps taken by the government over the weekend to shore up market confidence.
The regulatory authorities suspended 28 initial public offerings, while 21 major brokerages pledged to spend no less than 120 billion yuan on blue chip-based exchange-traded funds.
The People's Bank of China, the central bank, would offer liquidity support in various forms to China Securities Finance Corp, a State-owned enterprise specializing in providing margin loan services to brokerages, to help stabilize the market.
Hong Hao, managing director and chief strategist at BOCOM International Holdings Co, said: "Government intervention is necessary to halt market slide, or it may lead to wider systemic risks, but how to intervene is an important issue."
According to Hong, the key purpose of government intervention should be stabilizing the market and improving regulatory measures. But the government should let the market decide the level of the stock market rebound.
Mio said the government has been decisive in announcing a series of measures to stabilize the market and prevent an imminent meltdown.
"The support measures seem to be effective in stabilizing the blue chips. The market may still need some time to digest the margin call sell-off from the non-brokerage channels, and retail investors' confidence may have been temporarily shattered, so volatility is likely to remain over the next few weeks," said Mio.
"However, we do not believe it is the start of a bear market in A shares. The forces driving the bull market－monetary easing, structural reforms, and the household asset shift from property to equity－will continue to pull the market upward."
