The key stock index in Shanghai fell 5.3 percent today. The loss, the worst in 4 years, comes after China’s central bank froze lending between the country’s financial institutions last week. It’s an effort by the government to crack down on so-called “shadow financing.”

Marketplace’s China bureau chief Rob Schmitz joins Marketplace Morning Report host David Brancaccio to discuss.

Audio Extra: Julia Coronado, chief economist for BNP Paribas, discusses the latest moves by China’s central bank and central banks around the world.