Battered by the increased tax on trading, the Chinese stock market has reached a crossroad after diving by about 6 percent in three trading days.

Both analysts and investors are no longer as sure as they were when the market kept hitting record highs in recent months.

Their wavering confidence comes primarily from the unexpected government move on Wednesday, tripling the stamp tax to 0.3 percent. Some frustrated investors have taken it as the start of a series of government control measures that will generate ongoing market declines.