The Chinese benchmark index Shanghai Composite sank over 2% to close 1.02% lower at 2,702.18 on Monday.
Most of the indices in the Asian region were trading down, except for Japan’s Nikkei 225 and Asia Dow. Japan’s Nikkei closed 0.54% higher at 196.14 while Asia Dow closed 0.39% higher at 3,128.30.
On Sunday, the Chinese securities regulator said to enforce more measures to stop financial crimes including market manipulation and malicious short selling.
Also, a report said that China’s services sector grew at a slightly lower rate in January, according to a report by AP.
Other indices in the region, Australia’s S&P ASX 200 fell 1% to 7,623.30. South Korea’s Kospi closed 0.92% to 2,591.31.
Also, US futures declined and oil prices surged. The surge in oil prices can be attributed to the tensions in West Asia following fresh strikes in Iraq, Syria, and Yemen.