The Shanghai Composite Index fell 3.7 percent at the close yesterday, making it a drop of 7.4 percent for the week. This will be their largest weekly loss since 2009.

Technology companies led the slump, with the CSI 300 Index falling 4.1 percent and Hong Kong’s Hang Seng China Enterprises Index decreasing by 1.1 percent.

Analysts are increasingly warning that the stock market is in a bubble that llooks set to burst; the market has more than doubled in the past 12 months to reach its highest figures for seven years.

“Stocks have risen too much and valuations have reached critical levels,” Shen Zhengyang, an analyst at Northeast Securities Co. in Shanghai told Bloomberg. “Anything that’s slightly negative can impact the market.”