By DPA
Shanghai : Shares on China’s two stock markets lost more than seven percent Tuesday, as analysts blamed panic selling amid a global decline and fears of a US recession.
The key Shanghai Composite Index, which reflects shares traded in both local and foreign currency, lost 7.22 percent of its value, or 354.68 points, to end at 4,559.75.
The Shanghai index posted its biggest fall for more than seven months, while the smaller Shenzhen Component Index also dropped by 7.66 percent.
“People are worrying that the worsening sub-prime crisis may cause a US economic recession,” Su Yanzhu, a fund manager with China Southern Fund Management, told the official Xinhua news agency.
“This would reduce global demand of Chinese products,” Su said.
Banks and real estate companies again lost heavily, after they led a fall of 5 percent in the two markets on Monday.
Trading in shares in the Bank of China was suspended in Shanghai Tuesday, reportedly because the bank had failed to divulge “important information.”
Analysts’ forecasts of more government measures to control investment have also depressed the two markets.