A few weeks ago all the talk was about Japan.

Now the focus turns to China.

Last week we saw a surge in short-term interbank lending rates spark fears of a credit crisis.

Today: market crash.

The Shanghai Composite fell 5.3%, as the saddest index in the world continues to plummet. A big contributor to this was a message from the People's Bank of China telling banks that their liquidity issues were their own problem, and that they needed to sort them out.

Elsewhere in Asia, the Nikkei, which had opened up 1.4%, ended down 1.36%.

Meanwhile in Europe, Italy is down 0.7%. U.S. futures are red.

Also, interest rates on the U.S. 10-year are up to 2.59%.

That at the Chinese decline will be today's big story.

For more on the latest from the People's Bank of China, see here.