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Investors watch the electronic board at a stock exchange hall in Shanghai, China. - 

The key stock index in Shanghai fell 5.3 percent today. The loss, the worst in 4 years, comes after China’s central bank froze lending between the country's financial institutions last week. It's an effort by the government to crack down on so-called "shadow financing."

Marketplace's China bureau chief Rob Schmitz joins Marketplace Morning Report host David Brancaccio to discuss.


Audio Extra: Julia Coronado, chief economist for BNP Paribas, discusses the latest moves by China's central bank and central banks around the world.

 

Follow Rob Schmitz at @rob_schmitz