Chinese shares dived on August 17 amid increasing worries about shrinking liquidity and pessimistic economic forecasts.
The benchmark Shanghai Composite Index was down 5.79 percent, or 176.34 points, to close at 2,870.63. The Shenzhen Component Index dropped 6.65 percent, or 830.95 points, to finish at 11,668.8.
Shareholders look at the electronic board showing the index and share prices at a stock trading hall in Shenyang, capital of northeast China's Liaoning Province, Aug. 17, 2009.
Combined turnover on the two bourses shrank to 214.47 billion yuan (31.40 billion U.S. dollars) from previous trading day's 227.67 billion yuan.
Resources-related stocks led Monday's decline. The index for the coal companies slumped 5.97 percent as most of the coal stocks was down by more than 9 percent. The index for the nonferrous metal sector dropped 5.93 percent and the steel industry slid 4.76percent.
Pessimistic economic forecasts brought down the resources stocks just as strong confidence in economic growth had boosted this sector in previous days, said analysts.
