Market sneezes after US cold

China's benchmark stock index declined for the first time in four days, dragged lower by the deepening economic downturn and sluggish overseas stock markets, analysts said.

The benchmark Shanghai Composite Index (SCI) fell about 4.56 percent to close at 2,200.65 points. The smaller Shenzhen Component Index also dropped 3.72 percent to close at 8,403.02 points. The combined turnover on the two bourses was 250.43 billion yuan yesterday.

"We are seeing new lows in the US and European equities markets. This has led to the fall in A-share prices," said Zhang Gang, analyst with Zhongyuan Securities Co.