For the second time in four days, the Chinese stock market has closed early as a result of a 7 percent decline. Within the first 12 minutes of the trading day, the CSI 300, an index of 300 stocks that are traded on the Shanghai composite index and the Shenzhen composite index, was down 5 percent, which triggered a 15-minute stoppage in trading. Shortly after the stoppage, stocks plunged another 2 percent and trading was suspended for the day – a result of a mechanism put in place after this past summer’s stock market plunge to ward off volatility.
The nosedive on Monday and the subsequent halt in trading was attributed in part to the fact that restrictions on major shareholders (owning 5 percent of a company’s stock or more) and executives of Chinese companies selling stock were set to expire on Jan. 8. In response to Monday’s decline, the China Securities Regulatory Commission verbally informed the markets that the restrictions on trading would remain in effect for an uns
Deja Vu as Chinese Markets Fall Again
Jan. 6, 2016 Chinese markets closed abruptly for the second time this week, as the government tries to stem the impact of the economic volatility.