By Hong Soon-do, Beijing correspondent, AsiaToday - China's stocks plunged on 'Black Monday', leaving Asian stocks in 'panic mode'.

According to Beijing stock market specialists on Monday, the main Shanghai share index plunged 8.49 percent to close at 3,209.91 points. Shenzhen's main index fell 7 percent. It was the biggest one-day fall since 2007. Some even claim that that it's only a matter of time for the Chinese stock market to crash through the 3,000 point barrier.

A view of Shanghai Stock Exchange. China's stocks were hit by 'Black Monday' on August 24./ Source from search engine Baidu

1

The Chinese government has been struggling to support share prices that have been showing unusual patterns since last month. Last week, China's central bank injected liquidity in a form of reverse repurchase agreements, or reverse repos, short-term loans to commercial lenders in the money market. In addition, China allowed its basic endowment pension fund to invest in stock markets on August 23. However, it was not enough to reduce investors' anxiety.

China's dramatic stock plunge continues as investors are doubting about the health of China's economy. Perhaps it's natural for the investors, considering China's current economic situation. Most of all, China's exports are falling and domestic demand is not increasing at all.

China's stock market crash spread across Asia, where Japan's Nikkei suffered its worst one-day drop since 2013. Taiwan stocks also slid 4.8 percent. Philippine and Indonesian stock markets lost 4 percent and 7 percent, respectively. Thailand and India stocks stopped at about 4 percent.

Unfortunately, the disaster is still ongoing. Chinese investors are still lacking faith in the economy of China. Besides, there aren't much favorable factors. An even more terrible disaster could take place if investors give up hope thinking the government rescue attempt had failed.