China Trading Halted After Shares Plummet More Than 7%

The benchmark Shanghai Composite Index fell 7.3 percent to 3,115.89.

Global stocks plunged on Wednesday and Thursday, as traders' anxious about the debacle on the China stock exchanges and the reduction in the value of the RMB.

A Chinese investor takes a smartphone photo of electronic displays showing stock prices in a brokerage house in Beijing, Friday, Jan. 8, 2016. Trading halted only 13 minutes into the morning session.

The weakening of the fixing contributed to a selloff in stocks that led exchanges to close early on Monday and Thursday after the retreat triggered new circuit-breaker mechanisms.

The FTSE 100 tumbled more than 2% to 5,914 at its open after trading in China was suspended overnight, following a 7% fall in the country's CSI 300 index. The contract on Thursday dropped $2, or 5.6 percent, to settle at $33.97 a barrel. But it could hurt foreign currency borrowers and suggests that China's economy is in far worse shape than official data indicate.

Analysts also said that the dispute between Saudi Arabia and Iran was bearish for crude markets. Then, on Thursday, China stocks traded only 15 minutes before plunging an additional seven percent and setting off the circuit breaker again to halt trading.

The tempest in China's markets has been felt around the world.

The introduction of the new measure does not mean an exit of the "national team" including China Securities Finance Co.

The latest slump comes after China's government guided the yuan lower over several days, an indication authorities are prepared to weaken the tightly controlled currency to boost flagging exports.

Today's trading was the shortest trading time in the history of China's capital market history, Xinhua news agency reported.

In Europe, France's CAC 40 was down 2.8 percent at 4,353.76 and Germany's DAX slid 3.5 percent to 9,858.15. Futures augured sharp losses in the U.S.: Dow and S&P 500 futures were each down 2.3 percent.

"Under the circuit breaker mechanism, the market was suffocated".

"Singapore has a dynamic limit, where the 10 percent upwards or downwards band is based on the last traded price at least 5 minutes ago, instead of the previous closing price or the start of the trading day.

The market-selling pressure was originally not this heavy".

Despite reassuring statements by the central bank and stock regulator before midday, worries about how Chinese authorities would address the volatility exacerbated selling.

Meanwhile, shares in Hong Kong followed the mainland, with the Hang Seng down by 2.3% at 20,509.39 points.

The stop - activated when markets fall more than seven percent - was also triggered on Monday, its first day of operation.

Concerns about China have also helped ravage oil prices - a trend that in turn hurts global economies and further unsettles stocks. The Nasdaq Composite dropped 146.34 points, or 3 per cent, to 4,689.43.

On currency markets, a rush to safe investments hit emerging currencies, while the dollar fell below 118.00 yen for the first time since August.

Policy makers fighting to stem declines in the currency amid slower growth and plunging stocks have been burning through the stockpile to reduce yuan volatility.

Source: China Trading Halted After Shares Plummet More Than 7%