Chinese stocks sank on Monday, extending a global rout as investors have seemingly run for the exits in the country’s equity markets.

Hong Kong’s benchmark Hang Seng Index dropped more than 4 per cent in the first minutes of trading before recovering to a loss of 3.89 per cent, or 871.02 points, to 21,538.6.

For KGI Securities analyst Ken Chen, this month’s decision by the Chinese authorities to allow the yuan to devalue underscore the risks to the economy.

Simon Littlewood, president at business advisory firm ACG Global told the BBC there were concerns that the world’s second biggest economy was “a one-trick pony as they have been trying repeatedly over the past few months to put more liquidity into their economy”, yet so far have failed to calm markets.

Stocks plunged across Asia and U.S. index futures signaled more losses as the selloff in commodities deepened, sending South Africa’s currency toward its biggest drop in two years.

The preliminary version of the Caixin purchasing managers’ index fell to an unexpectedly low 47.1 points from July’s 47.8 points on a 100-point scale on which numbers below 50 show a contraction.

The Hong Kong China Enterprises Index lost 4.5 percent, to 9,732.62.

The market regulator has also issued reassurances that the CSF will continue to soothe market volatility “for several years”, but sentiment remains poor.

“The entry of the pension fund will take a long time to happen”.

Carlo Cottarelli, a senior International Monetary Fund official, also said Saturday that China’s economic slowdown and the fall in its stock market herald not a crisis but a necessary adjustment, Reuters reported Saturday.

Some analysts predicted more government intervention by the so-called “national team”, a description for entities, including the CSF, that are trading on behalf of the government.

But others warned that Beijing’s support was ultimately futile.

“It seems like we’re seeing the makings of the 1997 Asian financial crisis all over, with emerging-market currencies plunging”, CMC Markets strategist Nicholas Teo told Bloomberg News.