Shanghai's key stock index dived nearly 7.3 percent to the lowest since August 2, tracking losses elsewhere in the region.

The Shanghai Composite Index, which tracks yuan-denominated A shares and hard-currency B shares, plunged 7.22 percent, or 354.69 points, to 4,559.75 at 3pm. The index sank as much as 8.2 percent to 4,511.95 in the afternoon session.

The index tumbled 4.62 percent yesterday.

Losers in the Shanghai market outnumbered winners 780 to 16 and 54 were unchanged.

The Shenzhen Composite Index, which covers the smaller mainland stock market, shed 7.66 percent, or 110.95 points, to 1,337.23.

The drop tracked the second day of losses in other major Asian markets. Japan's benchmark Nikkei 225 index dropped more than four percent today and Hong Kong's Hang Seng Index had lost about eight percent near midday.

(Shanghai Daily January 22, 2008)