Monday, January 4, 2016

China stocks rout on first market day of 2016 trips national trading halt

China's major stock exchanges tanked on the first trading day of the year, triggering a "circuit-breaker" that suspended equities trade nation-wide for the first time and putting at risk months of regulatory work to restore market stability.
The selloff saw the CSI300 index of the largest listed companies in Shanghai and Shenzhen lose 7.0 percent before trading was suspended, its worst single-day performance since late August 2015, the depth of a summer stock market rout.
U.S.-listed shares of Chinese companies followed suit, with marquis names such as Alibaba Group Holdings Ltd and Baidu Inc. dropping by more than 4 percent each in premarket trading. The iShares China Large-Cap ETF was off 3.3 percent and ranked among the most actively traded before U.S. trading began.
The collapse, which followed the release of weak economic data on Monday, raises fresh doubts about regulators' capacity to wind back heavy trading restrictions implemented in the wake of a massive summer stock market crash in which major indexes lost as much as 40 percent before top leadership intervened. 

No comments: