The Shanghai and Shenzhen exchanges closed early after poor economic data triggered a sell-off
Trading on China’s stock markets ended early after steep losses triggered a new ‘circuit-breaker’ mechanism, installed to curb volatility.
The 7pc drop in China’s blue-chip CSI300 index prompted an automatic early closure of the Shanghai and Shenzhen stock exchanges on the first day of trading since the new safety measure was introduced.
The markets were paused for 15 minutes in afternoon trading after falling 5pc during the day, only for the sell-off to worsen once dealing resumed, triggering an early closure.
This was the first day of trading after a rollercoaster 2015, when the Shanghai Composite endured huge swings over the summer and created a short-lived market panic known as Black Monday. Despite the volatility, however,the index closed the year 10pc higher than it began.
The share price falls came after poor manufacturing data suggested China’s economy was losing steam. The Caixin China Manufacturing PMI index, an unofficial research index, showed a drop to 48.2 last month from 48.6, drifting further from the 50 mark that separates growth from contraction.
Full article: Chinese stock markets suspended after shares fall 7pc (The Telegraph)