Shanghai stocks cut by 3.39 percent today

Shanghai stocks slumped today to post the biggest decline since February 9, with shares of over a hundred companies fell by the limit of 10 percent.

The Shanghai Composite Index dropped sharply by 3.39 percent to end at 3,152.76 points, following the 2.93 percent decline of Dow Jones Industrial Average.

Communication companies such as Raisecom Technology Co Ltd, ZhongTongGuoMai Communication Co Ltd and Shenzhen Geoway Co Ltd all descended by the maximum daily loss of 10 percent.

Computer sectors are also among the biggest decliners. Suzhou Chunqiu Electronic Tech Co Ltd, Shenzhen Kingdom SCI-Tech Co Ltd and Qihoo 360 Technology all fell by the 10 percent limit down.

Non-bank financial shares such as Jiangsu Financial Leasing Co Ltd dropped to hit the limit, and Caitong Securities Co Ltd retreated by 8.67 percent.

The US President Trump proposed tariffs on about US$60 billion worth of Chinese-made products, to which the Chinese Ministry of Commerce responded that while China did not want a trade war, it was "absolutely not afraid" of one.

"China will not sit idly by its own legitimate rights and interests. We are fully prepared to defend our legitimate interests," the ministry said.

The ministry proposed a list of 128 US products as potential retaliation targets, according to a statement on its website posted this morning.

Shanghai stocks posted a weekly fall of 3.58 percent from 3,269.88 points last week.