Monday, January 4, 2016

Chinese markets suspended as shares plunge

Chinese stock markets have tumbled seven percent in their opening session of 2016, forcing exchanges to suspend trading for the first time.

The plunging share prices on Monday came as weak factory activity surveys and falls in the yuan added to concerns about the struggling economy.

Early losses quickly snowballed in the afternoon, with trading suspended around 05:30 GMT, about 90 minutes before the regular close.

Selling intensified after a brief 15-minute trading halt early in the afternoon when main indexes had shed five percent, and activity in Shanghai and Shenzhen was halted for the day soon after.

It was the first day that the China markets so-called "circuit breakers", intended to curb volatility, had been in effect.

Al Jazeera's Adrian Brown, reporting from Beijing, said the plunging share prices were "another reminder that China's economy is continuing to splutter".

"It is an economy weighted down by two problems at the moment: excessive government debt and currency flight," he said.

"The Chinese who can get their money out of the country continue to do so. They no longer have any faith in the stock market or the property market and they are voting with their feet.".........http://www.aljazeera.com/news/2016/01/chinese-markets-suspended-shares-plunge-160104071520645.html

4/1/16
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1 comment:

  1. Share markets fell, while oil and gold prices rose, as rising tensions in the Middle East and more poor Chinese economic data spooked investors...

    Europe's main stock markets followed Asian exchanges lower, with the FTSE 100 down 2%, Germany's Dax 3.3% lower and France's Cac losing 2.1%.

    Worsening relations between Iran and Saudi Arabia have heightened concerns over possible oil supply disruptions.

    That prompted a rise in the price of Brent crude oil, while gold rose 1%.

    In Asia, trading on the Shanghai and Shenzhen stock exchanges was ended early after shares slumped 7%, the first time China's new "circuit breaker" intervened to curb market volatility.

    The falls came after more signs of trouble in the world's second-largest economy.

    The Caixin/Markit purchasing managers' index slipped to 48.2 in December, marking the 10th consecutive month of shrinking factory activity in the sector. A reading below 50 indicated contraction.......http://www.bbc.com/news/business-35219745

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