Chinese stocks take another hard knock

Hong Kong

CHINESE stocks took another plunge on Friday, dragging commodity-producers' currencies lower. European stocks too dropped in early trading, with bonds from Spain and Italy ahead of last-ditch talks between Greece and its creditors.

The Shanghai Composite Index tumbled as much as 8.6 per cent, falling to within seven points of entering a bear market, and a gauge of technology shares dropped by a record. The Stoxx Europe 600 Index fell 0.6 per cent by 8.17am in London, and Standard & Poor's 500 Index futures were little changed. Japan's yen climbed 0.3 per cent versus the euro. The Australian dollar slid 0.5 per cent. Yields on Spanish and Italian bonds rose at least three basis points.