(Shen Yuxi (L), introduces analysis software to investors at a “street stock salon” in central Shanghai, China, September 5, 2015.REUTERS/Aly Song)

Stocks plummeted across China on Monday, with 500 stocks hitting their 10% daily limit and 1,200 falling 7%, according to the South China Morning Post. They're calling it another 'Black Monday'

Analysts are blaming the panic on news out of a government conference on the financial system held over the weekend. At the National Financial Work Conference, chaired by President Xi Jinping, officials decided to create a special committee to oversee the regulation and deleveraging of China's financial system over the next five years.

"The regulator will continue to crack down on violations of securities laws and regulations, including insider trading and market manipulation," said Jiang Yang, vice chairman of the China Securities Regulatory Commission during an exclusive interview with state media outlet Xinhua.

The message out of that meeting was clear — China's financial system is not turning to the bad old days (i.e. last year).

New world, new deal

What this means is that things are not going back to normal. There's a new normal in China now.

After allowing big, international dealmaking financial firms to grow at a breathtaking clip, the government started cracking down on them months ago. The aim was twofold — keep money in the country, and stop these companies from taking on too much risky debt.

(Chairman of Anbang Insurance Group Wu Xiaohui attends the China Development Forum in BeijingThomson Reuters)
Firms like Anbang Insurance, which bought the Waldorf Astoria, and HNA, which has also been snapping up US assets, started to experience uncomfortable run-ins with the government, despite their close connections to the Communist Party. The Chairman of Anbang, for example, was taken into custody even though he's married to late Chinese leader Deng Xiaoping's granddaughter.

In its story about the conference, Xinhua — which is widely seen as the voice of the Chinese government — took a moment to give these firms a shoutout (n0t a good thing if they want to go back to working the way they used to).

"Chinese insurers grabbed headlines by using leveraged money to buy shares in listed companies, triggering sharp volatility in the market late last year," it said.

To be fair, though, it looks like no one is safe — not even one of the richest men in China, billionaire Wang Jianlin of Dalian Wanda Group. According to Bloomberg the government found "violations" in six of his overseas investments, including one for US-based Carmike Cinemas. That means the government will direct banks not to fund his projects.