China sell-off reignites with 8.5% plunge

China's Shanghai Composite has suffered its worst day since early 2007 as the country's stock market sell-off returned with a vengeance on Monday morning.

The index closed down 8.5% at 3,725, with over 1,600 stocks reportedly down by the daily maximum of 10%, as the government intervention seen in recent weeks seemingly failed to materialise. Chinese policymakers have intervened in recent weeks to stabilise the market following a 30% retracement for the A-Shares market from its 2015 peak. The Shanghai Composite had risen 9.5% from its lows as a result. But today’s fall - the worst seen since February 2007 and second worst in 15 years - marks a return to the price action seen in early July, when the index suffered daily drops of as much ...