For the second time in four days the newly installed circuit breaker has halted trading for the day in Shanghai and Shenzhen following yet another 7 per cent tumble as investors rushed for the exists.
Chinese markets had ended Wednesday’s dealing with the largest gain in three weeks, though the hand of the mainland authorities was said to have strongly intervened in bolstering the markets.
However, with the US markets plunging 252.15 points overnight spooked by oil prices and a myriad of geopolitical issues including North Korea’a latest provocative weapons test investors decided to move out of the market.
Struggling to Trim Losses
As was the case earlier this week trading on the Shanghai and Shenzhen stock markets was initially halted for 15 minutes after the index fell more than 5 per cent. Instead of calming the mood though the drop continued.
By late morning markets across Asia which remained open for trading were struggling to trim losses.
Marc Faber has commented that China was going to see a hard landing and used the Chinese steel industry as an example. Conversely Stephen Roach the former Asian head of Morgan Stanley is of the opinion that the hard landing concerns are overdone.
