China Hushen 300 index futures sink Monday

China's key Hushen 300 index futures sank on Monday, with the contract for August, the most actively traded, down 10 percent to close at 3,647.8 points.

The September and December contracts both fell by the 10 percent limit to end at 3,593.8 points and 3,557.8 points respectively. The March 2016 contract fell 10 percent to 3,573.6 points.

The stock-index contracts, agreements to buy or sell the Hushen 300 Index at a preset value on an agreed date, are designed to allow investors to bet on and profit from either gains or declines in the market.

The index futures was launched at the China Financial Futures Exchange (CFFEX) and started trading from April 16, 2010. The CFFEX has set the base value for all the four contracts at 3,399 points.