China Markets Slump Despite Central Bank Rate Cut

China’s stock market slumped into bear market territory amid panicky trading on Monday, despite its central bank unexpectedly cutting interest rates over the weekend in an effort to stem the selling.
The Shanghai composite index has now lost more than 20% since its recent peak on 10 June, putting it into official correction territory after it more than doubled over the last year. Even including these losses, however, the index is still up more than 29% since January.
The latest falls have been partly fuelled by fears of a growing crackdown by regulators on loans used to speculate on shares, amid concerns that some investors were being forced to sell at a loss if the falling markets triggered breaches in their borrowing terms.