Stocks sink as latest trade data disappoints

People's Daily says that the nation needs to be proactive in dealing with rising bad loans

China's stocks capped their biggest two-day loss since late February, led by commodity producers and industrial companies, as trade data disappointed and the People's Daily warned about the country's rising debt in a front-page article.

The Shanghai Composite Index tumbled 2.8 percent at the close, extending Friday's 2.8 percent retreat. A gauge of raw material companies declined to its lowest level in more than two months. The nation's exports fell 1.8 percent in dollar terms in April, data released over the weekend showed, while imports dropped for the 18th month in a row.