China: Shanghai stocks tumble in global market sell-off

[SHANGHAI] Shanghai stocks plunged more than three per cent on Monday, in line with heavy losses across world markets fuelled by worries over the global economy.

The benchmark Shanghai Composite Index slumped 3.21 per cent, or 94.09 points, to 2,833.07, while the Shenzhen Composite Index, which tracks stocks on China's second exchange, collapsed 4.76 per cent, or 91.26 points, to 1,827.36.

Shares had enjoyed a run of big gains in recent weeks on hopes market index compiler MSCI would include Shanghai in its list of global benchmarks. An announcement is scheduled for Tuesday.

But investors followed a sell-off elsewhere ahead of key meetings of the US Federal Reserve and Bank of Japan, while uncertainty over Britain's future in the European Union before a referendum next week also dragged on confidence.

"Investors were trying to avoid risks amid several major decisions to be made soon, including the MSCI decision and (Britain's EU) vote. No one wants to gamble amid these uncertainties," Northeast Securities analyst Shen Zhengyang told AFP.

AFP