More than 2,800 stocks fell across Chinese markets on July 17 – dubbed “Black Monday” by analysts – with nearly 500 dropping by their daily limit of 10%, as a financial work conference chaired by President Xi Jinping sparked fears that the financial sector will face a prolonged period of increased scrutiny. More than 180 listed companies on the start-up board also warned of significant losses in the first half, including troubled Leshi Internet Information & Technology. Over 1,200 stocks declined by more than 7% on the Shanghai and Shenzhen stock exchanges. Combined daily turnover for Shanghai and Shenzhen soared 48% to CNY570 billion from the previous session. Stocks listed on the Shenzhen exchange, which feature more smaller-cap companies from the technology and consumption sector, suffered the most. The ChiNext Index closed down 5.1% at 1,656.43, the worst level in two and half years. The Shenzhen Composite Index sank 4.3% to end at 1,800.54. The Shenzhen Component Index declined 3.6% to 10,055.8. The benchmark Shanghai Composite Index also fell 1.4% to 3,176.46, the steepest daily percentage drop in more than seven months. “The panic is sweeping across the markets, sparked by a plunge in the start-up board,” said Wang Haijun, Analyst for Shanghai-based Zhongshan Securities. “Financial deleveraging and tightening regulations are not totally surprising news. But the reason the news has dealt such a blow was because it sent a message about the time frame. The financial work conference is held every five years, so markets expect the tightening to last for the next five years,” said Cui Xuetong, Manager for Beijing-based Zhongtou Tiancheng Asset Management.