Stocks tumble toward year's lowest level

An investor checks stock prices at a securities brokerage in Nanjing, Jiangsu province, Feb 29, 2016. [Photo/IC]

Chinese stocks tumbled on Monday with the benchmark index heading toward its lowest level this year as investors rushed to dump shares on concerns of further volatility.

The benchmark Shanghai Composite Index sank 2.86 percent to close at 2687.98 points. The index plunged as much as 4.6 percent during intraday trading. It managed to recoup some of the earlier losses in late afternoon trading led by the recovery of big-cap banking and energy stocks.

ChiNext, the start-up index that tracks high-tech and innovative companies listed in Shenzhen, sank by 6.69 percent to its lowest level since September.

Analysts said the stock dumping on Monday may have to do with investors' fears of the launch of the registration-based system for initial public offerings, which may flood the market with new share supplies.

Li Daxiao, the chief economist at Yingda Securities Co said pessimism has been released and the bullish sentiment could gradually gain some ground after Chinese authorities reassured investors with continued monetary easing at the G20 meeting over the weekend.