Today the Shanghai Composite Index tumbled by 3.65 percent, creating the largest one-day plunge since Nov. 12, 2010.

On March 1, the State Counciltold cities with “excessively fast” price gains to raise down-payment requirements and interest rates on second-home mortgages. The Cabinet also ordered individuals selling properties to “strictly” pay a 20 percent tax on the sale profit when the original purchase price is available, a levy that is being easily avoided.

This policy of property curbs strongly affected the trend of the stock market. In the morning, both the Shanghai stock market and Shenzhen Stock market gappeddowndramatically at opening.

Afterwards, individual stocks fell down quickly. The Shanghai Composite Index fell below 2,300 points again and continued dipping. Dragged down by weighted stocks, stock prices in both markets went straight down.

The real estate and cement boards slumped by nearly 8 percent. Weighted boards such as construction materials, coal, and finance also became the leading force in the tumble of the stock indices.

However, the good performance of some “subject shares” cannot be concealed. Stocks relating to environmental protection, food safety and green agriculture still boosted despite that the grail became green all over. The trading volume expanded tremendously from the previous trading day.

The Shanghai Composite Index ended 2,273.40 points, down by 86.11 points or 3.65 percent. The trading volume was 143 billion yuan. The Shenzhen Component Index ended 9,139.75 points, down 510.39 points or 5.29 percent. The trading volume was 133.7 billion yuan.

“When there are new rules of property curbs, the effects are far beyond property shares,” said Zhang Yanbin, analyst atZheshang Securities. “There have been talks of property measures in the past few weeks, resulting in declines in the market. The news over the weekend was evidence for a detailed measure, hence the loss is much bigger.”