BEIJING, Aug. 24 -- Chinese stocks nosedived on Monday morning, with the benchmark Shanghai Composite Index down more than 7 percent within half an hour after the opening.

The Shenzhen Component Index opened 4.22 percent lower and further slumped over 7.17 percent.

The ChiNext Index, tracking China's NASDAQ-style board of growth enterprises, opened 5.1 percent lower and dived over 7.67 percent.

Shares related to hotels, restaurants and public transportation industry lost the most.

The slump came despite the government's permission on Sunday to let the pension fund to invest in the stock market.