Stocks slump as investor enthusiasm for Xiongan recedes

Chinese mainland stocks slumped on Monday as the securities regulator warned against speculation and investor fever receding on stocks related to the newly announced Xiongan New Area in Hebei province.

The Shanghai Composite Index closed the day with a 0.74 percent drop to 3,222.2 points. During the intraday trading, it tumbled 1.1 percent, set for its largest drop this year. Real estate and materials shares were among the biggest decliners.

More than 100 stocks slumped by the 10 percent downside limit, which has been rare in recent months.