Beijing  - Shares on China's main stock market lost more than 5 per cent of their value on Monday, dragged down by banking stocks, on the first day of trading after the one-week National Day holiday.

The key Shanghai Composite Index, which tracks shares traded in local and foreign currencies, fell by 120.05 points, or 5.23 per cent, to end the day at 2,173.74.

The smaller Shenzhen Component Index also lost about 4.5 per cent of its value on Monday.

State media said the plunge was a delayed reaction to global falls last week, after Chinese share values were protected by the week-long closure.

Shares in Chinese banks lost an average of more than 8 per cent on Monday, reflecting continuing concerns over the US financial crisis, the official Xinhua news agency said.

Five of the banks, including China Merchants Bank and the Pudong Development Bank, plunged by the daily limit of 10 per cent, the agency said.

Shares in coal producers also fell heavily in reaction to lower oil prices, it said. (dpa)