Shanghai stocks close down 5.33% on economic gloom

China’s benchmark Shanghai stock index closed down 5.33 percent on Monday, as investors continued to worry over the state of the world’s second largest economy, dealers said.
The Shanghai Composite Index plunged 5.33 percent, or 169.71 points, to 3,016.70 on turnover of 286.4 billion yuan ($43.6 billion).

The Shenzhen Composite Index, which tracks stocks on China’s second exchange, tumbled 6.60 percent, or 130.62 points, to 1,848.10 on turnover of 377.8 billion yuan.
The Shanghai index fell nearly 10 percent last week, slammed by concerns over China’s flagging economy, weakening currency and a regulatory blunder.

On Friday, authorities reversed course and suspended a new “circuit breaker” mechanism that had fuelled a global rout by twice automatically closing Chinese markets early in just four days.