The Shanghai Composite - which has suffered in recent weeks as the People's Bank of China (PBoC) devalued the renminbi against the dollar - closed 6.15 per cent lower, at 3,748 points. Meanwhile, the Shenzen Composite closed 6.6 per cent lower, at 2,174 points.
European markets continued the decline, with the Dax and the Cac 40 falling 0.14 per cent in early trading - although the FTSE 100 bucked the trend, edging 0.07 per cent higher.
"A lack of trust in Chinese macro data compound[ed] both Chinese and global growth concerns," said Accendo Markets' Augustin Eden.
Meanwhile, Japan's Nikkei fell by a more modest 0.32 per cent.
"[The] Nikkei dipped after growth concerns re-emerged yesterday as Shinzo Abe’s government was seen to require a bigger quiver to house a few extra ‘arrows’. That is to say, further monetary easing," added Eden.
All eyes today will be on the Office for National Statistics, which releases its monthly inflation data this morning.
"Given renewed oil price weakness, with Brent crude having fallen more than 15 per cent in sterling terms in July, and domestic costs pressures still very weak, headline inflation looks to have remained unchanged," said Daiwa Capital markets' Grant Lewis.
"When excluding energy prices, core CPI is expected to have edged very slightly higher."