Editorial Summary

The Shanghai Composite Index slid 4.07 percent on Monday to close at 4,192.5, while the Shenzhen Composite Index tumbled 3.67 percent to close at 1,331.2. Trading volume on the Shanghai and Shenzhen Stock Exchanges was RMB93 billion and RMB43.2 billion, respectively.

Shares of China Unicom (NYSE: CHU, 762.HK, 600050.SH) hit the daily limit with a 9.98 percent drop to close at RMB10.92, following a rumor during the morning session that China Unicom plans to raise RMB60 billion. China Unicom vice president Tong Jilu denied the rumor, reports Sina.

Coal stocks were down big on Monday. China's largest coal mining company, China Shenhua Energy (601088.SH; 1088.HK), fell 7.18 percent to close at RMB51.3 on Monday, the lowest price since the company debuted on the Shanghai Stock Exchange on October 9. Shanxi Xishan Coal and Electricity Power (000983.SZ) and China Coal Energy Company Limited (601898.SH) fell 10 percent and 6.99 percent to close at RMB42.84 and RMB19.83, respectively.