Chinese stocks ended the day lower once again by 3.3 per cent with the benchmark indice now losing almost 27 per cent, since hitting a June 12 peak.

The Shanghai Composite fell to its lowest levels since April. Regulators tried to calm nerves by easing margin trading rules and the exchanges announced fee cuts, but it hardly helped.

Chinese stocks have been the best performing stocks in recent times and have generated returns that were close to 50 per cent, since the start of the year. Despite the sharp fall over the last one year, returns from Chinese stocks are still way above most markets.

Analysts had warned that stocks were in bubble territory, but, investors failed to see the storm coming.

GoodReturns.in