Chinese stocks plunge, triggering another market halt

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 was introduced 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. Trading halted only 13 minutes into the morning session Thursday. Stocks plunged further after trading resumed 15 minutes later, triggering the daylong trading freeze.

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, canceled 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

  • Luxottica to join with Essilor in $70B merger of two eyewear giants

    Economic CBC News
    A global eyewear colossus worth almost $70 billion Canadian is set to be created as Italy's Luxottica — owner of Ray-Ban and Oakley glasses — merges with France's Essilor, owner of Crizal, Transitions, Clearly Contacts and other brands. Source
  • Loonie, TSX lower; U.S. stock markets closed

    Economic CTV News
    TORONTO -- The Canadian dollar and Toronto Stock Exchange were lower in late-morning trading, with key U.S. markets closed for a holiday. The S&P/TSX composite index dropped 50.54 points at 15,446.74 after nearly two hours of trading. Source
  • Hard Brexit details send British pound to hard landing under $1.20 US

    Economic CBC News
    The British pound fell to its lowest since 1985 on Monday after speculation ramped up that British Prime Minister Theresa May will lay out her plans for a so-called "hard Brexit" from the EU to European lawmakers tomorrow. Source
  • IMF expects Canada's economy to expand by 1.9% this year

    Economic CBC News
    The International Monetary Fund is projecting strengthening world growth in 2017 and has upgraded its estimates of Canada's economic potential. However the Washington-based agency says any moves by the incoming Donald Trump administration to restrict trade could dampen the improving outlook. Source
  • Home sales rebound in December after large drop in November: CREA

    Economic CTV News
    TORONTO -- The Canadian Real Estate Association says home sales climbed 2.2 per cent in December compared with November as they recovered from a dip following the introduction of new mortgage rules. On a year-over-year basis, the real estate association says home sales were down five per cent last month compared to December 2015. Source
  • IMF: Canada will outpace most G-7 economies in 2017-2018

    Economic CTV News
    WASHINGTON, Wash. - The International Monetary Fund says uncertainty surrounding the incoming Donald Trump administration in the United States is making it difficult to forecast how the global economy will perform this year. But the Washington-based IMF says it estimates the Canadian economy will grow by 1.9 per cent in 2017 and 2.0 per cent in 2018. Source
  • IMF: Canada will outpace most G7 economies in 2017-2018

    Economic CTV News
    WASHINGTON, Wash. - The International Monetary Fund says uncertainty surrounding the incoming Donald Trump administration in the United States is making it difficult to forecast how the global economy will perform this year. But the Washington-based IMF says it estimates the Canadian economy will grow by 1.9 per cent in 2017 and 2.0 per cent in 2018. Source
  • OPEC cuts, while the U.S. turns on the oil taps

    Economic CBC News
    It's been a few weeks since members of OPEC started cutting production. Saudi Arabia said last Wednesday that its production is the lowest it's been in two years, Iraq said that it had made cuts, as did Kuwait. Source
  • Stark inequality: Oxfam says 8 men as rich as half the world

    Economic CTV News
    DAVOS, Switzerland -- The gap between the super-rich and the poorest half of the global population is starker than previously thought, with just eight men, from Bill Gates to Michael Bloomberg, owning as much wealth as 3.6 billion people, according to an analysis by Oxfam released Monday. Source
  • Who are the 8 richest people? All men, mostly Americans

    Economic CTV News
    DAVOS, Switzerland -- The eight individuals who own as much as half of the rest of the planet are all men, and have largely made their fortunes in technology. Most are American, with one European and one Mexican in the mix. Source