Shares fall over 6.74% on liquidity worries; heavyweights plunge

SHANGHAI: Chinese shares tumbled by over 6.74 percent yesterday as the market barometer plunged to a new three-month low and recorded its biggest daily drop in 14 months.

The benchmark Shanghai Composite Index lost 192.94 points to close at 2667.74 points, while the Shenzhen Component Index dropped 7.55 percent to 10585.08 points.

The leading indicator has fallen nearly 21.8 percent in August, the second-biggest monthly decline in 15 years, after seven straight monthly gains, as the curbs on lending and the new share supplies compounded the drop in liquidity