Chinese shares fail to 7%. Stop market
January 04, 2016
Today we have witnessed the worst start of the year for Chinese stocks. The sharp fall in the market has led to suspension of trading by more than 7 trillion options, stocks and futures. This allowed for the first time to try a new automatic system of stopping the trade.According to data from Bloomberg, trading was halted around 13:30 today in Beijing. Recall that the CSI 300 Index fell by 7%. After that trading was resumed, the shares continued to fall further. Market participants report that the suspension has worked as planned, without any difficulties and surprises. Such a sharp drop in the Chinese stock market has occurred after that the index of industrial sector showed worse data than expected for the fifth month in a row. Traders are waiting for permission to resume sales of shares to major shareholders at the end of this week. The Chinese government, which has adopted a series of risky decisions in order to maintain shares at acceptable levels during the summer crisis, and this time is trying to keep volatility at the beginning in financial markets, against the weakest annual growth rate since 1990. Turbulence excited all regional stock markets. The blow fell on Asian shares and US futures, which have seriously slipped. Global investors have lost some confidence in the second world economy due to collapse of the 5 trillion of China's stock market since mid-summer to early fall 2015. Chinese stocks continue to weigh on global markets.