Markets across the world tumbled on Monday as Greece ordered its banks to shut for a week and imposed capital controls after its citizens emptied ATMs, following the European Central Bank’s decision not to offer further emergency funds to keep banks afloat.

International creditors have refused to extend Greece’s bailout beyond its June 30 expiry date, sparking default fears over an IMF loan repayment due the same day.

But while everyone’s attention has been captured by the unfolding Greek crisis, China’s markets and economy have also entered a turbulent time.

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Asian markets have fallen sharply on the collapse of Greek debt negotiations over the weekend, with a rate cut failing to prop up Chinese stocks which have been hardest hit.

Morgans analyst Ken Howard said Australia needed to be keeping a closer eye on movement in China.

“Greece, as far as its impact on corporate earnings here in Australia, is very, very modest, if anything at all,” he told ABC’s The Business program.

The truth is this is actually just a currency war, and there really is no chance the all-powerful German export machine will allow Greece to exit the eurozone, writes Alan Kohler.

“The slowing Chinese economy is far more significant for Australian corporates and the demand for our commodities.”

Mr Howard said a decision from China to cut rates on the weekend offered some longer-term hope for commodity prices.

“A cut in interest rates is certainly a positive but typically interest rate moves take six months, 12 months, 18 months to actually flow through to underlying demand,” he said.

“It’s going to be some time off before we see some recovery there in commodity prices.

“China is clearly a far more significant player globally and for Australia.”

Concerns have grown over a possible debt default by Greece this week, triggering a tumble in global share markets, with Australian stocks caught in the sell-off.