The entrance to the China's Securities Regulatory Commission.
Zhang Peng | LightRocket | Getty Images)
China's securities market regulator said it would investigate suspected market manipulation after a slump of around 20 percent in Chinese stocks since mid-June.
The China Securities Regulatory Commission had established a team to probe market manipulation, "especially clues of illegal manipulation across markets," spokesman Zhang Xiaojun said in comments on the CSRC's official Weibo microblog late on Thursday.
Read MoreWill China's epic slide impact U.S. stocks?
Zhang said the regulator would send any cases it finds to the police for further investigation.