China’s stocks fell on Thursday, dragging the benchmark index to the lowest level in asmany as 15 months, as investors continued sell-off amid thickening concerns of animminent economic slowdown.

The Shanghai Composite Stock Index, tracking the bigger of China’s two stockexchanges, dropped 26.72 points, or 1.12 percent, to close at 2365.34 points onThursday.

China’s two stock markets in Shanghai and Shenzhen, near Hong Kong, will be closedfor a week early October, as the country celebrates the National Day holidays.

Stocks of financials including banks and major insurance and brokerages led thedecline because of the market sentiment that a slowdown in the world’s second largesteconomy could negatively impact the income of China’s banks and other financialcompanies.

Though some Chinese economists are calling for Beijing authorities to relax itstightening monetary policies, the still-elevating inflation levels – caused in essence byan oversupply of credit in the past two years – have weighted on the country’sdecision-makers.

Policy-makers are unlikely to relax tightening policies in the short term so the market isstill in the process of seeking its bottom and support, say market analysts.