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China's two stock bourses decided not to halt trading today in shares of more than 300 listed firms after they've posted wild volatility in the past few sessions - a move analysts say could prevent panic selling.

According to current rules, trading in a stock that has fluctuated by more than a cumulative 20 percent on three successive days has to be suspended for one hour and the company needs to issue a statement to disclose a reason for the move or certify that there's no undisclosed information affecting the price.

The Shanghai Stock Exchange said yesterday that trading will be allowed in 264 stocks whose companies had made a statement by Saturday explaining the fluctuations.

"The Stock Exchange adjusted the rule to ensure normal trading, and offset some of the negative impact triggered by panic selling," said an analyst.

The stock market saw a big correction since last Wednesday after the government raised stamp tax from 0.1 percent to 0.3 percent. The Shanghai Composite Index dropped 7.7 percent by Friday, while the Shenzhen Composite Index fell 12.7 percent.

Editor: Yan