Stock markets on mainland China are falling again to start the week, after a sharp decline on Thursday sent jitters through global markets.
That selloff saw the benchmark Shanghai Composite index close 2.29% lower — its worst one-day fall since June 2016.
After a steadier session on Friday, stocks in Shanghai have entered the lunch break down 0.81% in Monday trade.
At current levels, the Shanghai index is trading at its lowest point since August 28.
There were steeper falls in the CSI300 — a composite index comprised of the biggest stocks on the Shanghai and Shenzhen exchanges — which was 1.31% lower.
Despite more falls among the bigger companies, the tech-focused ChiNext index is trading flat into the lunchbreak — up by 0.17% on the session.
Analysts attributed last week’s steep falls to some profit-taking by investors, amid renewed efforts by Chinese policy makers to reign in excessive leverage.
Reports also suggested the selloff stemmed from efforts by Chinese authorities to cool speculative investment in one of China’s biggest companies.
More jitters in China may be extending to other markets in the region, with the ASX200 now trading close to flat on the day after opening more than 0.3% higher.
The Shanghai Composite index reopens after lunch at 4pm AEDT and will trade through to 7pm AEDT. If the selloff extends into the close it may negatively impact sentiment on global markets later tonight.
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