Shanghai stocks slumped on Monday, ending down 8.48 percent on worries the Chinese economy, the world's second largest, is heading for a sharp slowdown, dealers said.

The Shanghai Composite Index plunged 345.35 points to 3,725.56 on turnover of 721.3 billion yuan ($117.9 billion). The Shenzhen Composite Index, which tracks stocks on China's second exchange, slid 7.00 percent, or 162.62 points, to 2,160.09 on turnover of 667.7 billion yuan.