The ASX 200 lost two per cent of its value over the day, as the unfolding stock market crisis in China showed no signs of resolving.

And the Australian share market wasn’t the only one to suffer. The Tokyo and Hong Kong exchanges also saw big losses.

China’s benchmark Shanghai stock index closed down 5.90 per cent, as new government policies aimed at averting a market slide failed to have an impact, dealers said.

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The Shanghai Composite Index slumped 219.93 points to 3,507.19 on turnover of 700.2 billion yuan ($A153.65 billion).

The Shanghai index fell as much as 8.20 per cent during the day.

The Shenzhen Composite Index, which tracks stocks on China’s second exchange, lost 2.50 per cent, or 48.38 points, to 1,884.45 on turnover of 414.2 billion yuan.

It fell as much as 4.20 per cent.

Tokyo stocks tumble 3.14 per cent on China rout

Tokyo stocks tumbled 3.14 per cent Wednesday as a rout in Chinese equities hammered sentiment and added to losses fuelled by worries over Greece’s future in the eurozone.

The Nikkei 225 index at the Tokyo Stock Exchange dropped 638.95 points to close at 19,737.64, the first time it has fallen below the psychologically important 20,000 level in several weeks.

The broader Topix index of all first-section shares dived 3.34 per cent, or 54.75 points, to 1,582.48.

Tokyo opened in the red on concerns about Greece as it faces another deadline to reach an agreement on its debt, and the losses piled up in the afternoon as the plunge in Chinese markets had a ripple effect on regional markets.

The losses also spread to Hong Kong, which sank almost five per cent at one point in the morning, while US-listed Chinese firms tumbled despite a pick-up across Wall Street’s three main indexes.

Japan is a major trading partner with China and many firms with links to the mainland market saw their shares tumbled from Tuesday’s close.

“Today we’re starting to see Japan being dragged down and people worry about how the Chinese economy would affect Japan,” said Alex Wong, asset-management director at Ample Capital.

“Gradually this will drag other markets lower because the magnitude of a China crisis would be far bigger than anything happening in Greece.”

– with AAP