WATCH: Stock futures plunge as China stocks hit record highs

China is set to record the biggest one-day fall in its stock market since 2006, as it moves closer to the country’s second quarter, plunging as much as 22% to more than $1 trillion in the early hours of Friday morning.

China’s stock market plunged as low as $2,500 an ounce, before recovering and falling back to a record low of $1,500.

The Hang Seng Index, China’s benchmark index, fell as much in the morning as 3.1% on Friday, its lowest level since May 17.

That was a sharp reversal from a week earlier, when the index tumbled as much or more as 13%.

The market had traded at more than 20-year highs before China’s announcement.

Chinese stocks have fallen for two straight days, as Beijing continues to ratchet up the pressure on North Korea over its nuclear and missile tests.

The latest market collapse comes amid concerns that the world’s second-largest economy is preparing to introduce a sweeping crackdown on foreign currency trading, which analysts say could lead to more volatility.

The China Securities Regulatory Commission issued a notice late Friday morning to start winding down trading of all trading platforms, including those owned by big state-owned companies and investment firms.

The notice says the trading platforms will be shut down on Friday at 2 a.m. local time, and that trading will resume at 3 a. and 4 a.

China has been under pressure from international sanctions over its ballistic missile tests, which the United States and China view as an act of aggression.

The SRI also announced that it is reviewing rules to allow investors to participate in the countrys sovereign wealth funds.

China’s sovereign wealth fund, the People’s Bank of China, said it is looking into whether to allow more foreign investors to contribute.