HONG KONG — Chinese stocks rebounded sharply on Tuesday after the government took further steps to rein in short-sellers.

The main Shanghai share index closed 3.7 percent higher, reversing three days of losses, after the country’s two main stock exchanges said they would make it more difficult for investors to bet on falling share prices.

In announcements late Monday, the Shanghai and Shenzhen stock exchanges said that effective Tuesday, they would discontinue so-called same-day transaction settlements, in which trades are completed the day they are made, for short-sellers. They blamed the practice for causing “abnormal fluctuations in share prices and impacting the stable operation of the market.”

Instead, such investors — who borrow shares and sell them in a bet they can be repurchased at a lower price before they must be returned — will be required to keep their trading positions open overnight and can settle the trade only the following day.