China is taking new steps to try to stabilise its economy after the country's stock market fell by almost a third in recent weeks.

Many observers say the plunge of trillions of euro in market value could become a bigger threat to the world economy than the Greek crisis.

The Chinese government has now banned investors who hold stakes of over 5 per cent from sellling any shares over the next six months.

The Irish Times' China Correspondent Clifford Coonan says it's too early to say whether efforts to control the slump will work.