China stocks dive more than 7 pct Monday   

Chinese stocks plummeted by more than 7 percent in Monday's afternoon trading, led by declines in brokerage firms and commercial banks.

Most of the brokerage shares tumbled by the daily trading limit of 10 percent as securities regulator stepped up regulation on margin trading.

The China Securities Regulatory Commission said late Friday that 12 brokerage firms had been found to violate rules in their margin trading businesses.

The benchmark Shanghai Composite Index dropped 5.53 percent to open at 3,189.73. The Shenzhen Component Index opened at 10,939.04, down 5.15 percent.

Analysts said strengthened checks on margin trading, which is believed to fuel the recent rally in the stock market, caused panic and hurt sentiment.

Banking and insurance shares also posted big plunges on Monday.