Stocks dive 3% to fresh low

China's main stock index fell nearly 3 percent to a new 22-month closing low yesterday, led by bank shares, which continued to be hurt by the turmoil in the global financial industry.

Four banking shares plunged their 10 percent daily limits, after eight such shares dropped by that margin on Tuesday.

Dairy producers also tumbled after State television said a government probe found 22 of 109 companies checked had produced milk contaminated with the toxic compound melamine, which has sickened thousands of babies.