Beijing - Stocks on the Chinese mainland plummeted Monday after central bank chief Zhou Xiaochuan said there was room for more interest rate increases to rein in inflation.

Also influencing the plunge were falls on Wall Street and other Asian stock markets as well as fears of continuing global repercussions from the US mortgage crisis after the finance heads of the Group of Seven leading world economies predicted a further global economic slowdown at a weekend meeting in Washington.

The CSI 300 Index, which tracks yuan-denominated A shares listed on the mainland's two exchanges, fell 247.4 points, or
6.54 per cent, to 3,536.33.

The Shanghai Composite Index was down 196.22 points, or 5.62 per cent, at 3,296.67 while the Shenzhen Composite Index dove 67.86 points, or 6.3 per cent, to 1,009.16.

People's Bank of China Governor Zhou Xiaochuan indicated at the weekend that his institution might raise interest rates again after six rises last year. The action was taken to reduce inflation, which was estimated at more than 8 per cent in March. (dpa)