A top analyst has warned that roller-coaster shares price movements in China could become the norm, following Tuesday's 4.5% decline in share prices on Chinese exchanges.

The benchmark Shanghai Composite Index plunged 4.5% on fears of more aggressive tightening by regulators following the release of the latest CPI figure of 6.5% and the pressure of a 200 renminbi billion special treasury bond placing in the market on Tuesday.