AusBN – Chinese stocks fell a further 7.6% today after tumbling 8.5% yesterday in an event that the state media are calling “Black Monday”.
Share prices on the Shanghai Composite, China's main stock exchange, had not fallen so hard since 2007 and it affected markets across the world.
Global stocks have lost US$5 trillion of their value since China devalued the yuan, and fears concerning China's slowing economy continue to grow.
The fact that the Beijing government hasn't stepped in to prop up the market has only fuelled Chinese investors' fears further, encouraging widespread panic selling.
Mining companies that depend on Chinese demand suffered large drops in value, with Glencore (LSE: GLEN) losing 8% and BHP Billiton (ASX: BHP) losing more than 7%.
Bloomberg's commodity index of 22 raw materials, including both oil and metals, fell to its lowest level since 1999.
The price of oil fell to a six-and-a-half-year low; aluminium a six-year low and zinc a five-year low, while iron ore fell to less than US$47 per tonne.