The Chinese stock sell-off accelerated on Monday, driving markets down more than 8% and marking the biggest single day loss since the financial crisis in 2007, Reuters reported.
Last week the Chinese markets closed with an 11% loss. These declines mean the Shanghai Composite Index is down 37% since its peak in mid-June, the Wall Street Journal reported.
"It's difficult to judge whether investors are overreacting, or whether the market is near its bottom," Alex Kwok, an analyst at China Investment Securities in Hong Kong, told Reuters. "This is already a small-scale stock market disaster. Any rebound, if there is any, could be just technical."
On Aug. 11, China devalued its currency. This move sparked concern among investors who interpreted it as a signal of weakening growth in the world's second-largest economy that could cause a global slowdown. Beijing has responded by flooding the credit markets with extra money, AP reported.