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The Shanghai Composite Index (SHCOMP) has lost 4.95% today (pictured) in one of the biggest one day plunge as panic selling grips China.
The Hang Seng TECH Index fell 7.8%, while the Hang Seng index dropped 5.72% amid growing concerns about the economy.
Bank lending dropped more than expected in February, indicating a continued economic slowdown in the world’s second biggest economy.
Chinese banks extended 1.23 trillion yuan ($195 billion) in new loans in February, down sharply from a record 3.98 trillion yuan in January and far short of analysts expectations.
Public transport has now also been closed down in Shenzhen while some office blocks and housing in Shanghai were locked down as China fails to get a grip on the pandemic now two years on while Europe and America have returned to full normality after a successful vaccination campaign.
Bitcoin neared $40,000 just before Shanghai trading opened, but dipped to $38,000 with it now trading at $38,700.
The asset could be used as a hedge by some investors worried that China may be caught up in sanctions if it starts aiding Russia.
In addition SEC named its first batch of Chinese stocks that refuse to open their books to US regulators, raising concerns about more delistings.
While Didi Global has failed to secure a listing in Hong Kong as its tensions continue with Beijing.
All this adds to a dampened foreign investors sentiment after Evergrande, once China’s biggest property developer, defaulted on its debt.
China’s private sector is more indebted than even USA, with the targeted growth rate for this year lowered to 5.5% from 6%.
Whether they can achieve even that however remains to be seen as markets enter turmoil again.
