The Shanghai composite has closed down 8.5 percent in a brutal selloff, as Beijing’s measures have failed to ease investor concerns about the slowdown of the world's second-largest economy. China's stocks are now down for the year after being up 60 percent in June.
“This is a real disaster and it seems nothing can stop it,” Chen Gang, Shanghai-based chief investment officer at Heqitongyi Asset Management Co., told Bloomberg. “If we don’t cut holdings ourselves, the fund faces risk of forced closure. Many newly-started private funds suffered that recently. I hope we can survive.”
Asian markets followed China with a broad selloff.
Japan's Nikkei has closed 4.61 percent down. Hong Kong's Hang Seng is 5.17 percent in deficit. Mumbai's Sensex is down over 4 percent.
The ripple effects are being felt on the European markets.
London's FTSE is down 2.71 percent in early trading. Germany’s DAX is losing 2.66 percent, sliding below the 10,000-point mark for the first time since January, as of 09:23 GMT.
The European stock markets have continued last week’s negative trend, when 13 out of 18 Western European markets lost 10 percent or more, with Germany’s DAX down 18 percent. London's FTSE 100 Index suffered its biggest weekly drop in 2015, slumping 5.2 percent.
Commodities are down across the board with Brent crude trading below $44 per barrel, which is a six-and-a-half-year low.
On Friday, the US WTI crude benchmark dropped below $40 per barrel in an eighth straight weekly decline, the longest falling streak in almost 30 years.
The Russian ruble has fallen to its lowest level since February against major currencies, dragged down by both weak oil and Chinese stocks. The ruble was trading at over 71 rubles against the US dollar and 81.78 rubles against the euro as of 09:25 GMT.
The global market crash continued on Monday, starting with China and then continuing around the world.
Fresh from being slammed by more than 4% on Friday, a sell-off that took weekly losses to more than 10%, Chinese stocks were hammered yet again on Monday.
At the close the benchmark Shanghai Composite index fell 8.492% to 3,209.91, taking its losses from the multiyear peak of 5,178.2 hit on June 12 to 38%.
The Chinese media is dubbing the collapse "Black Monday."
Other markets in Asia also got hammered, with Hong Kong and Japan both falling 5%. Europe markets continued the rout, with most major indices down 2%-3% in early trading. And US DOW futures were down more than 400 points three hours before the market open.
China's Shanghai index is now trading at the lowest level since mid-March, and it has wiped out all of this year's gains.
At 8.49%, it was was the largest one-day percentage decline since February 27, 2007, slightly overshadowing the previous largest plunge of 8.48%, recorded on July 27.
It was also the sixth-largest percentage decline on record since daily down limits of 10% were introduced on December 16, 1996.
Still, adding some perspective to the recent losses, the index is still up 43% from levels of a year earlier.
Unsurprisingly, the carnage in Shanghai was replicated across other Chinese markets.
The CSI 300 and 500 indices, made up of the 300 and 500 largest firms by market capitalization in Shanghai and Shenzhen, fell by 8.75% and 7.97% respectively.
The Shenzhen Composite and ChiNext indices also closed down more than 7.5%.
The SSE 50, an index that contains the 50 largest stocks by market capitalization in Shanghai, fell by a jaw-dropping 9.35%.
Commodity prices are also nosediving.
US crude futures are down 3.19% at $39.16, the lowest level seen since the height of the global financial crisis.
Chinese iron ore, rebar, and coking coal futures are off by between 2.67% and 4.33%, while copper has lost an additional 1.56%.
Gold, having outperformed on the back of heightened market volatility on Friday, is trading lower. The spot price has lost 0.4% and now trades at $1,155.436 an ounce.
Overnight futures trading suggested further losses were in store for the Standard & Poor’s 500-stock index in the United States after last week’s 6 percent decline.
“The pension fund signal didn’t work, which proves that investors have entirely lost confidence in the market,” said Wu Xianfeng, president of Longteng Asset Management in Shenzhen. “The market has been in a panic since last week.”