Black Monday’ on Chinese stock market as shares plummet by more than 8% and the world’s second biggest economy continues its freefall Chinese stocks have plummeted in the worst day of trading since 2007 Shanghai index fell more than 8 per cent, losing all gains for previous year Initiative to allow investment from pension funds failed to prevent freefall Knock-on effect being felt across the world, in UK, Australia and Europe. Chinese stocks plummeted in a ‘Black Monday’ crash that saw the worst day of trading since the start of the global financial crisis eight years ago. A dramatic fall today has sent the global market into panic, on the heels of last week’s serious losses. The Shanghai index crashed more than 8 per cent in morning trading, effectively shedding all its previous gains for the year. The fall has spanned every corner of the market in China, the world’s second largest economy, with small-cap growth stocks and state-owned blue chips dropping at roughly the same rate. Markets are panicking,’ said Takako Masai, the head of research at Shinsei Bank in Tokyo. ‘Things are starting to look like the Asian financial crisis in the late 1990s. Speculators are selling assets that seem the most vulnerable.’ Even a last ditch attempt to rescue the market by introducing investment from pension funds failed to limit the serious losses as investors continue to flee the equity market. http://www.dailymail.co.uk/news/article-3208576/Black-Monday-Chinese-stock-market-shares-plummet-8-world-s-second-biggest-economy-continues-freefall.html