China shares down 5.88% in morning trade

China`s benchmark stock index plunged 5.88 percent on Monday morning after regulators cracked down on rule violations for margin trading, which has fuelled a extended recent rally, analysts said.

Shanghai: China`s benchmark stock index plunged 5.88 percent on Monday morning after regulators cracked down on rule violations for margin trading, which has fuelled a extended recent rally, analysts said.

The benchmark Shanghai Composite Index slumped 198.41 points to 3,178.09.

The Shenzhen Composite Index, which tracks stocks on China`s second exchange, lost 3.39 percent, or 50.11 points, to 1,428.36.