Thursday, January 7, 2016

China shares nosedive triggering new trading halt

Chinese stock markets tumbled by more than seven percent, forcing exchanges to suspend trading for the second time in a week.

The official Xinhua news agency said on Thursday that trading on the Shanghai and Shenzhen stock exchanges was frozen for the day.

The drop is being linked to poor economic figures, tensions after North Korea's nuclear test and the spat between the Arab world and Iran.

Reporting from Beijing, Al Jazeera's Adrian Brown, said that just 15 minutes of trading were possible on Thursday.

"There is evidence to show that China's currency, the yuan, is continuing to weaken which provides further confirmation that,the world's second largest economy is continuing to slow even more," Brown said.

"Also, there were reports on Thursday that the head of one of the country's big security exchanges was under investigation for corruption and insider trading," he added.

"And then, of course, on Wednesday North Korea claimed that it had successfully detonated a hydrogen bomb and that didn't exactly improve market sentiment".

The so-called "circuit breakers", which took effect on January 1 intended to curb volatility, also kicked in on Monday to halt stock trading.

Regulators announced in December that they would introduce the emergency measures, which are aimed at preventing huge price swings....

   Source: Al Jazeera And AP
7/1/16
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1 comment :

  1. Major financial markets in Europe fell sharply early Thursday, after China again suspended stock trading because of a massive sell-off....

    Beijing's securities regulator cut off trading just 14 minutes after the benchmark Shanghai Composite Index opened Thursday. By then, it had already tumbled 7.3 percent, while the smaller Shenzhen Composite Index slumped 8.3 percent.

    It was the second time this week that the so-called "circuit breakers" were used to suspend trading. The circuit breaker was employed by Chinese officials after last summer's volatile exchanges and sell-offs.

    The trading halt rattled investors, sending other Asian markets lower and weakening the value of the Chinese yuan currency by 0.51 percent against the dollar -- its lowest level since August.......http://www.voanews.com/content/china-stock-trading-suspended/3134699.html

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