Stocks plunge on lending concerns

China's stocks fell, briefly driving the benchmark index into a so-called bear market, on concern tighter lending will damp economic growth.

The Shanghai Composite Index lost 4.3 percent to 2,785.58, as China Shenhua Energy Co, the nation's largest coal producer, sank 6.8 percent, the most since Feb 18, and CITIC Securities Co, the biggest brokerage, sank 7.8 percent.

The gauge has slumped 19.8 percent since this year's high on Aug 4, after more than doubling from November's low as China rolled out a 4-trillion-yuan stimulus package. A plunge in new bank loans in July, disappointing earnings and concern the government will seek to damp property market speculation have sapped confidence.