China’s stock market became the worst major performing index in the world for 2008, ending the year down 65 per cent.

The annual drop, triggered by a broadening global economic malaise that has punctured China’s unprecedented economic boom, was the biggest in the index’s 18-year history, wiping out nearly $3 trillion in market value — not far off the total value of the country's $3.4 trillion annual gross domestic product.

Shanghai’s benchmark composite Index dropped 0.66 per cent today to end the year at 1,820.8 points.

The index had glanced an annual low of 1,664 points in late October, down from a 2007 record peak of 6,124 points.

Other Asia-Pacific markets also ended the year sharply lower today.

Australian shares posted a 41 per cent loss with the S&P/ASX 200 index ending the year at 3,722.3.

Japan’s Nikkei average ended 2008 down 42 per cent — the worst in its 58-year history.

New Zealand’s benchmark NZX 50 index slipped 33 per cent for the year to end at 2,715.71.

In early trading European shares rose today. The London stock exchange closes for the year at 1230 GMT while Euronext’s Paris, Amsterdam and Brussels bourses are set to close half an hour later.

The FTSEurofirst 300 index of top European shares is predicted to show a 45 per cent slide this year.

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