🔴 China halts trading after stocks plunge 7%
🔹China suspended stock trading on Monday after weak manufacturing data spooked investors and sent shares plummeting.
🔹The benchmark Shanghai Composite shed 6.9%, while the Shenzhen Composite lost more than 8%.
🔹The trading halt was China's first-ever use of circuit breakers -- a kind of emergency brake -- on main exchanges.
🔹Investors were reacting to disappointing manufacturing data, which suggested the country's all-important factory sector is in for more pain. After improving for two months, Caixin's manufacturing PMI fell to 48.2 in December. Any number below 50 represents a deceleration.
🔹Regulators announced plans for the circuit breakers in December in a bid to avoid a repeat of last summer's crash that sent markets around the world tumbling deep into the red.
🔹Starting Monday, a 5% rise or fall on the CSI 300 Index, which tracks stocks in Shanghai and Shenzhen, triggers a 15 minute trading halt.
🔹A move of 7% at any time, or 5% in the last 15 minutes before markets close, stops trading for the rest of the day.
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