China stocks plunge most in 5 years

China stocks plunge most in 5 years. The Shanghai Composite Index tumbled 5.4 percent, the most since August 2009, on government action to curb risky debt after topping 3,000 for the first time since 2011 yesterday. China said lower-rated bonds can no longer be used as collateral for some short-term loans, sparking a selloff in debt and the yuan. The move will help remove riskier debt from the repo market before China requires local government financing vehicles to clarify next month which bonds are backed by the state. (VIEW LINK)