The Shanghai Composite Index fell 6.7% on Monday which is considered this year's worst percentage fall for Chinese stocks.
From David Stamp, Reuters:
LONDON, Aug 31 (Reuters) - Global stocks edged lower on Monday, dragged down by a 6.7 percent tumble in China which sent nervous investors into the yen, while an historic opposition victory in Japanese elections also gave the currency a boost.
Shanghai's big drop had a psychological knock-on effect on international sentiment, even though Chinese share trading is largely cut off from global markets.
U.S. stock index futures also pointed to a lower open on Wall Street on Monday as investors worried about whether Beijing authorities will keep on boosting the Chinese economy, one of the leaders of the global recovery.
