China's key stock index falls 5.48% in afternoon trading

Chinese shares slumped more than five percent on Monday as the government showed little willingness to address a liquidity squeeze in the domestic financial system, dealers said.

The benchmark Shanghai Composite Index lost 113.67 points, or 5.48 percent, to 1,959.42 in afternoon trade, breaching the 2,000-point level analysts had pegged as support.