China stocks nosedived on Monday with the benchmark Shanghai Composite Index dropping 8.49 percent to close at 3209 points, its sharpest decline since Feb. 2007.
The smaller Shenzhen Component Index fell 7.83 percent to close at 10,970 points. The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, lost 8.08 percent to end at 2,152 points.
Near 2200 shares tumbled by the daily limit of 10 percent.
After an 11-percent loss in share values last week, investors expected the central bank to inject more liquidity by cutting the reserve requirement ratio over the weekend, but the adjustment did not happen.
The flash China general manufacturing PMI retreated to 47.1 in August, its lowest reading since March 2009.
The flash index is the earliest available indicator of manufacturing sector conditions in China. The continuous fall in the index in recent months indicates that the economy is still bottoming out.
For more on this, we spoke earlier with Professor Liu Baocheng, from the University of International Business and Economics.
