As a result, the Shanghai Composite imploded, at one point trading down 8% while the Chinext and Shenzhen markets crashed even more. This was the single biggest Shanghai Composite one-day drop since 2007, and with a close at 4192.87 the SHCOMP is now on the verge of a bear market, down 19% from its June 12 highs. China's second largest market, Shenzhen, is now officially in a bear market.

We wonder if the media will blast that Chinese stocks have lost $2 trillion in 2 weeks with the same euphoria as they explained how Chinese stocks crossed $10 trillion in market cap precisely two weeks ago.

What caused the plunge? Many factors were involved, and here is a brief summary from RanSquawk:

In recent weeks, the Shanghai Comp has traded in a volatile fashion and has on occasions seen intraday declines of around 4% before staging a late rally to close positive.