China stocks' worst day in nearly three weeks after "manipulation" punishments

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The share price falls came as a long-awaited plan to overhaul China's bloated state-owned enterprises (SOEs) was met with disappointment by investors.

Shares in many of the SOEs that were expected to benefit from the plan had risen over the past year, and when it turned out to be less far-reaching than many hoped, investors seized the moment to lock in profits.

Monday's share price falls also came amid growing concern among foreign investors that China's slowdown is worse than previously thought, and mounting disquiet that measures taken by the Beijing authorities to stabilise the stock market and revive the broader economy are failing.

There was more bad news over the weekend, as data released on Sunday showed fixed-asset investment for the year to date through August posting the slowest rate of growth for 15 years. Factory output growth also remained near its weakest level in a decade.