GLOBAL STOCK CRASH: China's stock market suffers biggest one-day fall since 2007... China's stock market suffers biggest one-day fall since 2007, defying government intervention...US Stock Market Down 665 Points in Pre-Market

Associated Press By Joe Mcdonald, AP Business Writer 3 hours ago

BEIJING (AP) -- China's stock market fell Monday by its biggest margin in eight years, defying the government's multibillion-dollar effort to stop a slide that has wiped out the gains of this year's price boom.

The decline threatened to weigh anew on global markets after last week's Chinese losses triggered a worldwide selloff.

The benchmark Shanghai Composite Index fell 8.5 percent to close at 3,209.91 points, its biggest one-day loss since an 8.8 percent decline on Feb. 27, 2007. The index is down 38 percent from its June 12 peak and just under 1 percent below its closing on Dec. 31, last year's final trading day.

"A disastrous result for China, after working so hard to breathe life back into domestic equities after the 2007 crash and having spent hundreds of billions of dollars propping up the market since June," said Angus Nicholson of IG Markets in a report.

Small investors have suffered heavy losses, souring many on stock ownership and threatening to disrupt Communist Party plans to use the market to raise money for reforms of state industry.

"It feels like the end of the world," said Pan Chong, a social media specialist. He said he invested 50,000 yuan ($7,900) in April, made 40 percent and then saw the market wipe out those gains.

"The so-called correction will finally become a long-term bear market," said Pan, 25. "So I'm considering selling all my shares as soon as possible."

The Chinese benchmark soared more than 150 percent starting in late 2014 after state media said shares were inexpensive, which led investors to believe Beijing would shore up prices if needed. Urged on by state media, millions of novice investors rushed into the market.

Prices faltered and then plunged after an unrelated change in banking regulations in June led investors to question whether Beijing's support might be weakening. The market index fell 30 percent, prompting Beijing to intervene by barring big shareholders from selling and promising state-owned brokerages and pension funds would buy.

Beijing's initiatives helped to calm markets. But after the state-owned company charged with buying shares to prop up prices announced it would not intervene every day, the Shanghai index fell 11.5 percent last week. more