The Shanghai composite index dived 3.6% to close at 2,900.97 as concerns about the effect of China’s stimulus measures surfaced.
The benchmark has dropped more than 20% from its high in December, officially entering bear market territory.
China’s latest monetary and credit data showed that small and medium-sized enterprises in China face problems getting loans from Chinese banks, despite Beijing’s efforts to boost the country’s private sector, analysts said.
U.S. stock futures were more than 1% lower before the start of trading Friday.
Japan’s Nikkei 225 index lost 0.5% to close at 17,147.11 while Hong Kong’s Hang Seng index dropped 1.5% to 19,520.77.
Brent crude was 1.5% down at $30.43 a barrel at around 3 a.m. ET.
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