Chinese stocks have plunged again for a second day after worries over China’s slowing economic growth resulted in a global sell-off by investors. The Shanghai index ended the day 245 points lower at 2,964.97. This sharp fall follows several months of rapid stock price rises.

BBC News reported that the Shanghai Composite, China’s main stock exchange, fell 7.6{06aeb1921e0b802d2bd9c766bc98fb11cc6a46c2b0593ed9c88a0e29cf417a34} on Tuesday. This followed a loss 8.5{06aeb1921e0b802d2bd9c766bc98fb11cc6a46c2b0593ed9c88a0e29cf417a34} on Monday, labelled by state media as China’s “Black Monday”.

It was the worst fall since 2007 and caused sharp drops in markets in the US, Europe and Asia. Japan’s Nikkei index was volatile, ending the day 4{06aeb1921e0b802d2bd9c766bc98fb11cc6a46c2b0593ed9c88a0e29cf417a34} lower.

As China’s economy is slowing down, after decades of rapid growth, investors around the globe are worried that both businesses and countries which rely on high demand from China – the world’s second largest economy and the second largest importer of both goods and commercial services – will be affected.