2,800 Chinese stocks fall on 'Black Monday'

More than 2,800 stocks fell across Chinese markets yesterday on “Black Monday,” with nearly 500 dropping by their daily limit of 10%, as a financial work conference of the Chinese top leadership sparked fears that the financial sector will face a prolonged period of increased scrutiny, according to the South China Morning Post. The sentiment also took a further blow as a flurry of listed companies on the start-up board had warned of significant losses in the first half, including the troubled Leshi Internet Information & Technology. Over 1,200 stocks declined by more than 7% on the Shanghai and Shenzhen stock exchanges. Combined daily turnover for Shanghai and Shenzhen soared 48% to 570 billion yuan from the previous session. The ChiNext Index closed down 5.1% at 1,656.43, the worst level in two and half years. The Shenzhen Composite Index sank 4.3% to end at 1,800.54. The Shenzhen Component Index declined 3.6% to 10,055.8.