Chinese stock market halted for second time in a week

BEIJING - China halted stock trading Thursday, its second daylong trading suspension this week, after prices plunged in the latest spasm of investor panic on its volatile markets.

See Full Article

Chinese markets have lurched up and down as regulators gradually withdraw emergency measures imposed after the main stock index plunged in June following an explosive rise.

A similar price plunge Monday triggered a sell-off on Wall Street and other global markets.

On Thursday, trading was suspended after a market index, the CSI 300, nose-dived 7 per cent a half-hour after markets opened, triggering a "circuit breaker" that took effect Jan. 1.

Financial analysts have warned Chinese markets are likely to see extreme volatility for a few more months as they seek a stable level following last year's rout.

The "circuit breaker" requires a 15-minute pause in trading if the CSI 300 falls 5 per cent within 30 minutes. But Thursday's decline was so fast that before that could take effect, it hit the 7 per cent limit that ends trading for the day.

The benchmark Shanghai Composite Index fell 7.3 per cent to 3,115.89. The Shenzhen Composite Index for China's smaller second exchange slumped 8.3 per cent to 1,955.88.

Also Thursday, a six-month ban on sales by shareholders who own more than 5 per cent of a company was due to expire. Regulators announced this week that to avoid fueling further volatility, such sales will be limited to private transactions.

The Shanghai benchmark more than doubled between late 2014 and its June 12 peak as millions of novice investors bought shares.

Prices plunged 30 per cent after that, triggering a panicked response by Beijing. Regulators banned large sales, cut interest rates, cancelled initial public stock offerings and ordered state companies to buy shares.

Chinese leaders had encouraged the public to buy in hopes of raising money to overhaul state industry. The market rout alienated small investors who were left holding shares worth less than they paid.

Authorities say shares bought by state companies will be transferred to China's sovereign wealth fund to avoid depressing prices by selling them in the open market. The ban on new IPOs was lifted in November.



Advertisements

Latest Economic News

  • U.S. says ban on laptops in airplane cabins has been lifted

    Economic CTV News
    DALLAS -- The ban on laptops in the cabins of planes flying from the Middle East to the U.S. is over, as federal officials say that large airports in the region have taken other steps to increase security. Source
  • McDonald's adds Big Mac onesie, sweats to items it delivers

    Economic CTV News
    OAK BROOK, Ill. -- With McDonald's now offering a delivery service, the fast food giant is looking to make customers comfortable eating at home with a new clothing line that includes an adult-size Big Mac onesie. Source
  • Observers temper expectations for Sears liquidation deals

    Economic CTV News
    TORONTO -- Dozens of Sears stores slated for closure begin liquidation sales Friday, but bargain hunters would be wise to temper their expectations, say industry experts. Eager to avoid bankruptcy, the one-time retail giant is counting on hordes of shoppers to scoop up discounted merchandise, fixtures and equipment as soon as possible. Source
  • Price shock: Fraser report shows Ontario hydro prices surging at twice national average

    Economic CTV News
    Ontario energy prices have skyrocketed significantly higher and faster than the rest of the country over the last nine years, with Torontonians paying twice the national average, according to a report from the right-leaning Fraser Institute. Source
  • Exxon Mobil fined $2M US for Tillerson-era breach of Russia sanctions

    Economic CBC News
    The Treasury Department hit Exxon Mobil Corp. with a $2 million fine Thursday for violating Russia sanctions while Secretary of State Rex Tillerson was the oil company's CEO. Treasury said in a statement that Exxon under Tillerson's leadership had shown "reckless disregard" for sanctions that the Obama administration imposed on Russian entities in 2014 over Russia's annexation of Crimea. Source
  • Rogers Q2 net income rises 35%, beats analyst estimate

    Economic CBC News
    Rogers Communications reported a 35 per cent increase in second-quarter net income on Thursday, beating analyst estimates with an especially strong performance from its key wireless division. It's the first financial report issued by the Toronto-based telecommunications and media company on Joe Natale's watch since he became its CEO in April. Source
  • Supreme Court won't hear appeal from former Nortel employee over benefits

    Economic CTV News
    OTTAWA -- The Supreme Court won't hear an appeal from a former Nortel employee who claimed her charter rights were violated over the issue of disability payments. The employee had argued that the 2015 agreement reached on how disability benefits would be paid out in the wake of Nortel's bankruptcy was unfair and unreasonable. Source
  • Canadian travel to U.S. drops, while overseas visits to Canada surge to highest May ever

    Economic CBC News
    Canadians are making fewer trips to the United States, and foreign appetite for travel in Canada has hit its highest May on record. Statistics Canada reported Thursday that Canadians made 3.2 million trips to the United States in May, down almost eight per cent from April's level and nearly six per cent lower than the same month a year ago. Source
  • Florida house where O.J. Simpson lived listed for $1.3 million

    Economic CTV News
    MIAMI -- What happened to the Florida home where O.J. Simpson lived with his children after his acquittal in the death of his ex-wife and her friend? The 4,148 square-foot (385 sq. meter) home is currently on the market for nearly $1.3 million. Source
  • Sears and Amazon; Alexa, turn up my Kenmore air conditioner

    Economic CTV News
    HOFFMAN ESTATES, Ill. -- Sears will begin selling Kenmore appliances on Amazon.com, including smart appliances that can be synced with Amazon's voice assistant, Alexa. The announcement before the opening bell Thursday sent shares of Sears soaring 11 per cent. Source