China's declining stock market has resulted in a sharp decrease in the market capitalization of the two bourses in Shanghai and Shenzhen.

The market value of the Shanghai and Shenzhen bourses plummeted to 42.74 trillion yuan (about 6.5 trillion U.S. dollars) on Friday's closing of market, down nearly 9 percent from the previous week.

There are 1,081 and 1,747 listed companies in the Shanghai and Shenzhen stock markets, where the price-earnings ratio were 14.54 and 41.38 respectively. h China's has the world's second-most capitalized stock market behind the United States, after overtaking Japan a year ago.

After a bearish week, the Shanghai and Shenzhen bourses were valued at 24.26 trillion yuan and 18.48 trillion yuan respectively by the close of market on Friday.

Amid global market turbulence accompanying lackluster domestic economic data, the benchmark Shanghai index lost 8.96 percent to end at 2,900.97 points, and the Shenzhen index shrank 8.18 percent to close at 9,997.92 points over the week.

On Saturday, China's securities watchdog vowed to learn a lesson from the stock market rout.

"Wild market swings revealed our supervision and management loopholes," said Xiao Gang, head of the China Securities Regulatory Commission, at a national conference on securities market regulation.

"We will improve regulation mechanisms, intensify supervision and guard against risks so as to create a stable and sound market," Xiao said.

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