China Halts Stock Trading For Day After Entire Market Crashes
Following the initial halt in CSI-300 Futures at the 5% limit down level, the afternoon session opened to more carnage and amid the worst 'first day of the year' in at least 15 years, Chinese stocks collapsed further to a 7% crash. At 1334 local time, stock trading was halted for the rest of the day across all exchanges (at least two hours early).
As Bloomberg reports,
Chinese stock trading was halted for the rest of the day after the CSI 300 Index plunged more than 7 percent.
Trading of shares and index futures was halted from about 1:34 p.m. local time, according to data compiled by Bloomberg.
Stocks fell as manufacturing contracted for a fifth straight month and investors anticipated the end of a ban on share sales by major stakeholders.
Under the mechanism which only became effective Monday, a move of 5 percent in the CSI 300 triggers a 15-minute halt for stocks, options and index futures, while a move of 7 percent close the market for the rest of the day. The CSI 300 of companies listed in Shanghai and Shenzhen fell as much as 7.02 percent before trading was suspended.
Not a happy new year...
Dow futures are now down over 150 points from NYE close, Gold and Treasuries are bid, and offshore Yuan has plunged most since the August devaluation.
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HO LEE FUK STOK TRUK BROK DONG !!!
No market...free or otherwise will be allowed to determine valuations. Not in China, not in America, not anywhere. Welcome to your future. Central planners worldwide unite.
You are not too informed, are you?
http://eagleonetowanta.com/
I would be more concerned about this future ..
https://youtu.be/fKxkBEHWZuI
https://youtu.be/v6_leZDf30c
This is where the REAL battle lies ..
A true contrarian is one that bucks even the consensus at ZH ..
Decouple from the USD and bring CIPS online already (to bypass SWIFT), if ya got the balls.
This is coming. But not quite in such way most think it will ..
http://www.veteranstoday.com/2014/07/30/the-coming-return-of-the-real-us...
The PRC will decouple from the FRN (petro-dollar). It will not necessarily need to re-couple with a new gold-backed USD. The master of macroeconomics has something else in mind. He is sorting out Greece. You think he is not capable of bigger tasks?
http://eagleonetowanta.com/?p=297
Sell Mortimer, Sell !!!
Turn those machines back on dammit!
It's pretty obvious that central banks are using excess reserves to move the equity markets.
And to support the bond market and cap the gold market.
The short end of the bond market. Not gold
I bet Janet is awake right now on the phone to London telling them to make sure to keep the lid on gold. The LBMA is run by Rothchild bank no less.
The LBMA was supposedly restructured, after the fixing scandal?
I never heard who the new players are?
Maybe .. Red Shield helped create the USSR ..
Lee Wanta helped end it .. [1]
http://eagleonetowanta.com/wp-content/uploads/2015/12/Chapter17-Wanta-Bl...
See The General Agreement on Cooperation (1990)
And, that would City of London (not the same as London)
http://www.veteranstoday.com/2014/07/30/the-coming-return-of-the-real-us...
------------
[1] Technically we could say Reagan. He was, after all, Wanta's boss .. And no, GHWB was not POTUS. Never legally was ..
excess reserves? Would you be so kind as to explain that part for us newbs?
https://www.youtube.com/watch?v=jt377DV2BKs Excess Reserves
Fiat magic. Got it thanks.
Boom goes the dynomite.
too bookoo
you still have me laughing with that. "Too beaucoup" Vietnam was French colony (apologies for getting all serious on your joke which still has me laughing).
Gold suddenly goes parabolic?
Equity CFD's and Futures look UGLY!
Make fucking sense!
Wake the FUCK UP!
You do see gold moving from 1063 to 1070? You do have access to "real time" charts?
$1078 now.........
"$1078 now........."
I'd sure hate to be short in this market. Isn't it strange how the market formed a perfectly "compressed" head and shoulder pattern with a top in at 10 a.m. (EST), and then, amazingly, returned above $1075? All in the span of a few hours. I am not an economist, but I don't think that usually happens over a single day trading cycle, does it?
Which historic line of resistance (top and bottom) should I be looking at in a volatile market like this?
*Not that I play paper market or treat PM's as anything more than an extra shovel or hoe in my inventory, just curious as to the machinations of this part of the commodities market.
There you have it.... the trade for 2016 is buy treasuries and gold
Six-month share sales ban imposed on listed Chinese companies major shareholders due to expire on January 8. Blam.
C'mon guys. Just BTFD. C'mon now, Cramer says its fine...
Must be the weather to be blamed.
Enjoy the January effect.
no boom boom with bull market
The $usdx keeps a popping the the 200 hour.
I'm digging into the Euro and Asian Indexes.
I what to know how they're weighted...
WTI is dripping lower, so I'm thinking some yen and euro weakness going into London.
Still short paper Gold ???
Yes. Just added.
I'm doing partial closes on my core position...
I'm using my profits to purchase physical metal.
I'm long gold.
lol Watching the paper market. Stop hunting Arabs...
Now I'm going to NUKE them as they cover their trades.
And silver is up OVER 6 cents !! Catch Me !!
...now passing 36 cents.......
Do u even know wtf u are saying? Make some fucking sense!
We miss 2015 already ???
I recently shorted another contract @ 1068.55.
Lowers my Break Even.
I understand charts... I put in my 10thousand hours.
Lets start the year with how we mean to go on... oh bollocks.
Well Harry Dent was among the first guys THIS year to say the markets are going down before Feb, he might be on to something with that call.
I love how they can say tell you what, Lets just have the day off and wait for this whole thing to blow over .... What do they think is going to happen tomorrow? Oh by the way maybe you have some spare Bitcoins I am more than willing to accept donations to a good cause.......15nut3xGxhkE8Urc4KXwCsNbi72dWPn1cQ
Goldman Sachs has recalled their ambassador.
Ever notice that once a piece of paper has the slightest crease anywhere it becomes like the only thing you see. But the whole sheet is still virgin paper. Like our fixation on the moment at hand while the rest of time we have is not real. But I walk in mountains a billion years old and wonder what could possibly be worth worrying About
It is the weather. STUPID!!
See, I leave for 12 days, and the whole world goes to hell. And yes, blame the weather.
Standard Disclaimer: At least I get to say I didn't shop at Dickey Bub in Union, MO. while I was home on vacation... Because I'm not stupid enough to live in a fucking flood plain. (Brief historical factoid - that used to be the location of the old Walmart in Union, until they moved to higher ground down the road after they got flooded out the last time the Bourbuese river overflowed it's banks way back when)
https://twitter.com/emilyrau/status/681879179542048768
Correction: It is the Global weather. STUPID!!
According to Macquarie Research:
https://app.box.com/s/ju6d0ren3gfg4m3dbr2o3qx09q9dp0tn
China’s savings dilemma
In our latest commentary, we ask whether China’s economy can be re-balanced.
China savings dilemma. It is a truism to state that China’s investment and debt fuelled economic formulae is ultimately unsustainable and could lead to severe consequences for China and the global economy. Indeed it has become one of the most consensus themes and hence mechanisms by which China can rebalance and the likely time-frame have emerged as the key points of debate.
In order to understand what is ailing China one needs to appreciate the underlying causes that drive overinvestment and rising debt levels. Whilst there is nothing new in China’s model of suppressing consumption and re-directing funds towards investment and trade (mercantilist model that over centuries has been used by countries as diverse as Germany, Russia, US, Japan and Korea), the global impact of China makes all other transitions pale into insignificance.
Arguably the best way to illustrate China’s challenges is to examine its sectoral balances (given that all sectors must ultimately balance to zero, it precludes arguments that do not take into account consequences of changes in one sector on others). The key problem is that all of China’s sectors (household, corporate and government) are significant gross savers. As a result, gross national saving rate (~48% of GDP) is the highest in the world and is responsible for ~30% of entire global flows. The high level of savings can be either utilized domestically in fixed asset investment or it can be exported to other countries (via current account surplus). Indeed, China has been doing both, with high investment rates (~45% of GDP) and CA surpluses. The challenge however is that China is starting to run into constraints in both domestic (high ICOR rate, declining ROE and debt addiction) and foreign utilizations (declining ability of other countries to absorb China’s surplus, in the global economy that lacks growth; trade and liquidity). Hence, an urgent need to unhook China from its investment and debt fuelled model and move towards lower savings and higher consumption.
Unfortunately, “iron logic” of sectoral balances precludes simple solutions. The ideal outcome would be: (a) spontaneous rise in household spending at a rate much faster than investment and concurrent (b) strong recovery in global trade, allowing China to further reduce investment via higher CA surplus (as other countries would have greater capacity to accommodate China when global trade expands). We view chances of either outcome coming to pass at almost zero.
Hence China has to settle for sub-optimum choices, such as: (a) relying on long (decades) demographic transition to lower savings; (b) attempting to accelerate consumption through higher fiscal spending (eroding precautionary savings); (c) transfer of surpluses from corporate sector to households (lower prices; higher dividend and capital distributions); and (d) lower currency (stealing growth from other countries). All of these choices have side-effects and do not yield quick results. The pace of China’s re-balancing is now too slow to make much ST difference and therefore it has no choice but to continue with investment growth fuelled by debt, until it is either exhausted (under weight of excessive debt) or global and local (reforms) factors converge to assist this transition. The jury is still out on which outcome is more likely. We continue to prefer quality private sector players that offer protection if reforms stall and benefit if they accelerate.
How did we do in 2015? “Quality & Stability” portfolio delivered ~8% relative performance; outperformance since Mar’13 is ~24%. “Sustainable Dividends” finished inaugural year with ~10% outperformance whilst “Thematic Leaders” is up by ~7-8% since launch in Sep’14.
Ominous especially when this recent ad is considered: major auditing firms hiring experienced shredders for weekend work. White collar ex-cons preferred. Must be willing to relocate at a moments notice. Great legal defense benefits.
I want that job please please. I swear I will shredder the shit out of the ream of used paper I smuggled in...
In China there was an ad for truck drivers willing to move company records without GPS.
If there is a paycheck in it, sign me up....have shredder, will travel....got a phone number?