The iShares FTSE China Large-Cap (NYSEArca: FXI) and other Chinese stock ETFs were down sharply Monday on liquidity fears as the Shanghai Composite absorbed its worst one-day loss in over almost four years.

The Shanghai Composite plunged over 5% while FXI shed more than 3% in U.S. premarket trading.

China ETFs have been slammed this month as short-term lending rates spike, triggering concerns the world’s second-largest economy is facing a major liquidity crisis. [More SHIBOR Woes Could Slam These ETFs]

“The worst of the liquidity crunch may now be behind us, but we believe interbank rates will stay at elevated levels until at least the second week of July,” said Standard Chartered China economist Stephen Green, in a MarketWatch report. “The longer this policy lasts, the more concerns about banking-sector stability will be raised. It may also cause slower credit growth in the second half.”

Chinese ETFs sold off after the People’s Bank of China said liquidity was at a “reasonable level” and urged large banks to do more to help restore calm to the country’s unsettled markets, the Financial Times reports.