Chinese shares drop in dramatic slide

Chinese shares continued their sharp fall on Monday as concerns over the country's slowing growth and volatile markets sparked panic among traders.

The mainland benchmark index, the Shanghai Composite, closed down 8.5% at 3,209.91 points, extending last week's losses.

The sell-off continued despite Beijing's latest attempts to reassure investors.
China's dramatic tumble has dragged down markets across the region.

The Hong Kong Hang Seng index dropped 4.9% to 21,313.28, while the region's biggest stock market, Japan's Nikkei 225 closed 4.6% lower at 18,540.68 points, its lowest level in nearly five months.

In Australia, the S&P/ASX 200 finished 4.1% lower at 5,001.30, while South Korea's Kospi index wrapped the day 2.5% lower at 1,829.81 points.

Beijing's latest intervention, to allow its main state pension fund to invest in the stock market, failed to reassure traders both in China and abroad.

Under the new rules, the fund will be allowed to invest up to 30% of its net assets in domestically-listed shares. By increasing demand for them, the government hopes prices will rise.

(BBC)