China has guided its yuan currency stronger for a second straight session on Monday, soothing fears over the currency's depreciation.

The People's Bank of China set the mid-point for the yuan at 6.5626 per dollar on Monday, a level from which the yuan is allowed to move no more than 2 percent. But the yuan's steadier performance failed to stop investors selling Chinese shares.

The Shanghai Composite Index and the CSI-300 index were both down more than 5 percent.