That does not appear correct - what index are you looking at? The largest declining index I see in China last night was the Shanghai SE 50 A share, which was down less than 4% - that's a relatively small move (2/27/07 selloff was almost 10% on that index).
Ah ok - that makes sense. HSI getting pummeled the last few months (down about 25% from the October 07 highs).