Panic selling by investors after the Chinese share market was suspended for the second time this week has wiped off around $37 billion from the Australian share market.
The All Ordinaries index continued a New Year four-day horror run, falling around 2.1 per cent to rest at 5,068.8 points on Thursday.
The latest suspension of markets on the Shanghai and Shenzen exchanges stoked fears over the strength of China's economy and the adverse affect that a hard landing could have on Australia, a major supplier of iron ore and other resources.
Thursday's sell-off affected nearly all stocks except for the gold sector and airline operator Qantas, with energy and mining stocks hit the hardest. Global miner BHP Billiton fell 4.8 per cent, while energy giant Woodside Petroleum tumbled 5.1 per cent and the big four banks all lost between two and three per cent.
Mining and energy stocks were already being sold off in early trading after oil prices slid to an 11-year low on concerns China's economy.
But the selling intensified after trading on the mainland China markets was frozen following a fall of seven per cent.
The latest plunge was sparked by another move by the Chinese government to lower the value of the
