Global market jitters continue as Chinese stocks fall again

Chinese stocks sank again today despite a rebound in markets elsewhere in Asia, as there was growing concern among at the lack of policy action from Beijing in response to recent data suggesting a deepening downturn in the world's second-largest economy.

 Major Chinese stock indexes tumbled more than 6 per cent in early trading, hitting their lowest levels in 8 months, following their more than 8 per cent plunge on Monday that sent shockwaves through global financial markets.

China has overtaken Greece at the top of the worry list of global investors, who are concerned that its economy is growing at a much slower pace than Beijing's 7 per cent target for 2015.

The CSI300 index of the largest listed companies in Shanghai and Shenzhen finished the morning session down 3.9 per cent, while the Shanghai Composite Index fell 4.3 per cent.

After the turmoil in China rocked world equity and commodity markets on Monday, policymakers elsewhere in Asia sought to soothe fears about the broader impact on the global economy.

"I think it's important that people don't hyperventilate about these type of things," said Australian Prime Minister Tony Abbott, whose country is heavily exposed to China, the biggest consumer of its commodity exports.

"It is not unusual to see stock market corrections. It is not unusual to see bubbles burst in particular markets and for there to be some flow-on effect in other stock markets, but the fundamentals are sound."

Japanese finance minister Taro Aso also said Chinese stocks, which had more than doubled in the six months to May, had been a bubble that was now bursting.

"There's also suspicion on whether China's official GDP figures reflect the real state of the economy," he told a news conference after a cabinet meeting in Tokyo.