File Photo: IC

Chinese stocks plummeted in what has been the largest flash crash since 2015 on Monday, with the benchmark Shanghai market crashing by more than 7 percent, as markets responded in a somewhat panic way to the coronavirus crisis on the first trading day after the extended Lunar New Year holidays.

But the stock plunge has been generally in line with the forecasts of many financial analysts, who also forecast that the nosedive will be just on a temporary term.

As of closing time, the Shanghai Composite Index plummeted to a one-year low of 2,746.61 points, down 7.72 percent.

The Shenzhen Composite Index edged down by 8.45 percent to 9,779.67 points, while the ChiNext shed 131.97 points to 1,795.77 points. More than 3,000 stocks plummeted by the daily trading limit.

The indexes have dived despite a slew of efforts announced the previous day to assuage investors over their worries about the spread of the coronavirus.

As of Sunday midnight, the virus has killed 361 in the mainland, surpassing the death toll of the SARS epidemic, which killed 349.

Stocks of drug and protective mask manufacturers came across as the silver lining of the mainland market, with a handful of related stocks rising by their daily trading limit.

For example, shares of Guangzhou-based medical giant, Improve Medical, touched the trading ceiling of 10 percent shortly after opening time.

On Monday, nearly 20 billion yuan ($2.85 billion) overseas capital flowed into the mainland stock markets, the high amount of capital inflow since January 2.

China's futures market also slumped at the open on Monday, with iron ore, screw thread, crude oil, and egg contracts all falling by their daily trading limit.

Global Times