It was the second time this week that "circuit breakers" were used to suspend trading. The benchmark Shanghai Composite Index tumbled 7.3 percent to 3,115.89 Thursday, while the smaller Shenzhen Composite Index slumped 8.3 percent to 1,955.88.
The circuit breaker was employed by Chinese officials after last summer's volatile exchanges and sell-offs.
"The use of the circuit breaker is the main reason for the falls as investors panicked after seeing it being triggered on Monday," Phillip Securities' analyst Chen Xingyu told the French news agency (AFP).
The move unnerved investors across the region, 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...
voanews.com
7/1/16
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Leading European share markets fell 3% after trading was suspended on the Chinese markets for the second day running...
ReplyDeleteShares in China fell by 7%, triggering the "circuit-breaker" rule which is designed to stop panic selling.
That came in the first 30 minutes of trading, making it China's shortest trading day on record.
The slump prompted renewed panic on global market.
The 100 share index in London was almost 3% lower, down by 166.62 at 5906.76. In Germany, the Dax was down 3.56%, or 363.76 points at 9850.26 and France's Cac was down 3.17% or 141.83 points, at 4338.64.
Investors are nervous after the central bank moved to weaken the yuan for the eighth day running.
This move is designed to boost exports as it makes Chinese goods cheaper outside the country.
It is being interpreted as an indication the domestic Chinese economy may be slowing more sharply than thought and the authorities are not hopeful growth it will be fuelled by internal demand...........http://www.bbc.com/news/business-35248798
7/1/16