China's stocks fall most in three weeks on weakening yuan

Chinese stocks dropped the most in three weeks on Monday, led by industrial companies and small-cap shares, amid concerns that a weaker yuan will limit prospects for further stimulus and that State-backed funds will sell shares.

The Shanghai Composite Index declined 0.75 percent at the close. Beijing Originwater Technology Co posted its biggest loss since February.

The ChiNext gauge of small-cap startup companies slid the most since July 27. Offshore Oil Engineering Co retreated 2.5 percent in Shanghai as crude oil fell in New York.