Frankfurt - German shares plunged over four per cent Monday on a day when the government and German banks moved in to rescue major mortgage lender Hypo Real Estate and markets around the world also continued to lose ground amid ongoing finance sector turbulence.

The blue-chip 30-share DAX in Frankfurt closed at 5807.08 points, down more than 250 points or 4.23 per cent from the pre-weekend closing level.

Monday's final reading was the lowest in more than two years on the Frankfurt exchange.

The MDAX list of 70 medium-cap companies was hit even worse, shedding over 460 points, or nearly 6.4 per cent, to 6820.42 points.

The TecDAX list of technology-oriented shares plunged almost 50 points, or 6.86 per cent, to close at 675.48 points. (dpa)