Global stocks in ‘panic mode’ as Chinese factory slump drags on markets

Global markets are hemorrhaging. How many more band-aids can be put on a wound that is somehow only delaying the death of the patient?

 

Britain’s leading share index fell to 6,286 points on Friday morning immediately after opening, a decline of 1.26%.
The drop mirrored stock markets across Asia-Pacific after they went into “panic mode” when further signs of a weakening Chinese economy compounded overnight losses on Wall Street and European bourses.

China’s factory sector shrank at its fastest pace in more than six years in August as domestic and export demand dwindled, a private survey showed, adding to worries that the world’s second-largest economy may be slowing sharply and sending financial markets into a tailspin.

China’s surprise devaluation of the yuan and heavy selling in its stock markets in recent weeks have sparked fears that it could be at risk of a hard landing, which would hammer world growth. Continue reading

China bans major shareholders from selling their stakes for next six months

Regulator seeks to slow stock market plunge with threat to punish those who flout ban as other markets continue to suffer

China’s securities regulator took the drastic step of banning shareholders with stakes of more than 5% from selling shares for the next six months in a bid to halt a plunge in stock prices that is starting to roil global financial markets.

The China Securities Regulatory Commission (CSRC) said on its website late on Wednesday that it would deal severely with any shareholders who violated the rule.

The prohibition is also seen applying to foreign investors who hold stakes in Shanghai- or Shenzhen-listed companies, although most of their holdings are below 5%. Continue reading