Shanghai Stocks Just Went Through The Floor With A Major Sell-Off

Chinese stocks just saw a colossal sell-off late in trading, sending the Shanghai Composite index from a small increase to a 5.43% crash.

Here's how it looked:

That's not done much to dent the meteoric rise of Shanghai's stock market, which is still up by 39.47% since January. But such rapid slumps will likely be raising a few eyebrows.

Only yesterday, Shanghai stocks were being sent through the roof by some abysmal trade numbers. The stock exchange is setting record trading volumes at the moment, and it's extremely choppy.

So it's no surprise at all that Chinese regulators are already warning investors about the sharp rally.