Chinese stocks on Monday slumped to the lowest point since March 2009, as institutional investors dumped shares amid intensified fears of an economic slowdown.

The benchmark Shanghai Composite Index fell 1.74 percent, or 36.40 points, to close at 2,055.71. The Shenzhen Component Index closed at 8,402.15, down 2.06 percent, or 177.13 points.

Combined turnover on the two bourses shrank to 102.7 billion yuan ($16.3 billion) from 109.27 billion yuan ($17.2 billion) on Friday.

Jitters were aroused by a number of fund investors' moves to cut their stock holdings last week as well as a new batch of shares that will conclude their lock-up period, adding more liquidity to dilute market sentiment, dealers said.

Greater declines in industrial profits and the falling purchasing managers' index compiled by HSBC Corp. underlined fears of a slowing economy and weighed on investors' sentiments.

Securities brokers fell by 5 percent, as their profit margins will be affected by less active trading after billions of shares are pumped into the market following the end of the lock-up periods.

Citic Securities, China's largest securities brokerage by asset value, slumped 5.3 percent to 10.19 yuan ($1.6). Guangfa Securities tumbled by the daily limit of 10 percent.

(Xinhua News Agency August 27, 2012)