Sector Snap: Asian ADRs Drop As China Shares Sink

NEW YORK (AP) — U.S.-traded shares of Asian companies slid Monday following a big sell-off in China's benchmark index.

In China, the benchmark Shanghai Composite Index on Monday dropped 192.94 points, or 6.7 percent. to 2,667.75, its lowest close in more than three months. The Shenzhen Composite Index of China's second, smaller exchange tumbled 7.2 percent to 904.14.

Investors are wary of a tightening in bank lending, which helped propel Chinese shares more than 80 percent higher earlier in August. State media reports said bank lending dropped in August from July.

The Chinese government also said last week that it will try to cut overcapacity and excessive investment in some sectors.

The Bank of New York Mellon's Asian ADR Index fell 1.5 percent in afternoon trading. An American depositary receipt, or ADR, is a stock that trades in the U.S. but represents shares of a foreign corporation.

Many energy companies, Chinese services providers and Asian blue chips took a hit in late afternoon trading.