China stocks slid to the lowest level since 2009

Chinese stocks slid to the lowest level since 2009 as fears of slowing economy show no signs of abating.

The benchmark Shanghai Composite Index fell 1.26 percent, or 27.24 points, to close at 2,141.40.

The Shenzhen Component Index closed at 9,186.02, down 1.58 percent, or 147.19 points.

Combined turnover contracted to 98.13 billion yuan (15.58 billion U.S. dollars) from Friday’s 109.64 billion yuan.

Investors have been unsettled by China’s lowest quarterly economic growth in more than three years since the second quarter GDP figure was released in mid-July.

Shares of banks on the A share market were the worst hit. China Merchants Bank fell 3 percent to 9.69 yuan, its lowest in six years, as it had to postpone a re-financing plan due to unimproved capital adequacy ratio.

Hua Xia Bank slumped 3 percent to 8.42 yuan, and Shanghai Pudong Development Bank lost 2.1 percent to 7.45 yuan.

Insurers fell as they might face mounting compensations for victims of the heaviest rainstorms in Beijing in six decade over the weekend which killed at least 37 people and caused economic losses of nearly 10 billion yuan.

China Life, the nation’s largest life insurer, dipped 1.81 percent to 19.52 yuan. Ping’an Insurance, the second-largest insurer, dropped 2.57 percent to 44.79 yuan.

Securities brokerages retreated as the government regulator requested they lower transaction fees by 20 percent.

Citic Securities, China’s largest securities brokerage by asset value, slumped 4.06 percent to 12.30 yuan. Haitong Securities ended at 9.80 yuan, down 1.21 percent.

Xinhua