Chinese stocks sink to lowest levels since 2014

Chinese stock markets plunged to their lowest levels in four years on Thursday following a global rout, with shares in around 1,000 firms falling to their daily limit of 10 per cent.

Shanghai fell 5.22 per cent, or 142.38 points, to 2,583.46, marking the lowest level since November 2014.

The Shenzhen Composite Index, which tracks stocks on China's second exchange, plummeted 6.45 per cent, or 89.15 points, to 1,293.90 -- its lowest point since September 2014.

"Chinese market already suffered a blow in confidence after Monday and investors were in a very sensitive state of mind," said Zhang Yanbing, analyst with Zheshang Securities.

"So they panicked and overacted today."
"Interest rate put aside, the Sino-US trade spat is to blame for the October market rout because people are worried the friction will evolve into a political confrontation."