Shanghai slips 3.7%; down about 16% from Aug high of 3478

Asian markets were trading weak. China's Shanghai Composite fell 3.77% or 114.93 points at 2,932.04. China has corrected nearly 16% from Aug high compared to 1-5% correction seen by other markets. FDI in China fell 35.7% in July; it is the 10th straight month of decline. Metal prices has slumped; Copper and zinc tumbled by the daily limit in Shanghai. The Yunnan Copper, the 3rd biggest producer of the metal fell 7% after posting a 1H loss. Also Zhuzhou Smelter, the biggest producer of refined zinc fell 7%. PetroChina, nation's biggest oil company, was down 4%, set for the lowest in almost three months.

Hong Kong's Hang Seng declined 2.64% or 552.48 points at 20,340.85.
Japan's Nikkei slipped 2.70% or 285.99 points at 10,311.34.
Singapore's Straits Times fell 1.17% or 30.55 points at 2,583.63.
South Korea's Seoul Composite plunged 2.11% or 33.64 points at 1,557.77.
Taiwan's Taiwan Weighted was down 1.48% or 104.49 points at 6,965.02.

By Varinder Bansal, CNBC-TV18

Shanghai down 4.5% today, FDI in china fell 35.7% in July. This has been one of the weakest markets. Last week also China was down nearly down 15%. If you just compare from the August highs compared to all the bucks which are down between 1-4%. Some of the major reason has been that some of the rumors that were going around in the market. Restriction of the borrowing and high spy in the Chinese market via IPO were one of the major concerns.

But what has lead to the fall today in this market is the huge selling pressure which has come from the commodity market. In China copper and zinc which are trading down 5%. LME copper- zinc are down by 2-3% and most of the metal were down between 2-5% last week as well. So we are seeing that most of the metal related stocks in China are down between 5-10%.
Stocks like Yunnan Copper which is the third biggest producer of the metal is down 7%, Zhuzhou Smelter which is the biggest producer of refined zinc in China market is down nearly 7%, PetroChina which is the nation’s biggest oil company is down 4%, so weakness all around the base metal complex in the China market.

The information which you gave, the FDI in China fell 35.7% in the month of July, which is the 10th straight decline in terms of declines. The S&P 500 which is trading above the 1000 mark till now is down only 2% if you just compare from August highs whereas China after fall of today is nearly down 17%. So you can just see the way Chinese market has corrected slowly and steadily but yes concerns are going around there.