Here We Go Again: China Halts Trading For The Entire Day After Another 7% Crash

Tyler Durden's picture





Happy New Year...


Chinese traders are unhappy:

  • Circuit breaker may be triggering “herd effect” and intensifying panic, investors may accelerate selling after 1st trading halt as they seek liquidity: Galaxy Sec. strategist Sun Jianbo
  • “There seems to be considerable anxiety in the mkt with investors selling as a preventive measure,” Shenwan Hongyuan Group director Gerry Alfonso
  • Investor confidence is on “shaky ground” due to negative factors incl. sharp depreciation in yuan, oil price slump and overnight losses in overseas equity mkts: Central China Sec. strategist Zhang Gang
  • Threshold being hit too easily in China, adding “liquidity fears” in mkt: Catherine Cheung, Head of Investment Strategy & Portfolio Advisory at Citibank Global Consumer Banking

Crude crashes to a $32 Handle...


Gold just surged to $1100...


The entire Chinese stock market has been halted on half the trading days in 2016

The punishment will continue until The Fed unleashes QE4!!

*  *  *



US Equity markets are tumbling...


And USDJPY is in free-fall...


Someone just stepped into support the Offshore Yuan...


As we detailed earlier:

Following the collapse of offshore Yuan to 5 year lows and decompression to record spreads to onshore Yuan, The PBOC has stepped in and dramatically devalued the Yuan fix by 0.5% to 6.5646. This is the biggest devaluation since the August collapse. Offshore Yuan has erased what modest bounce gains it achieved intraday and is heading significantly lower once again. Dow futures are down 100 points on the news.

PBOC fixes Yuan at its weakest since March 2011... with the biggest devaluation since August


And Offshore Yuan collapses...


This all has a worrisome sense of deja vu all over again... We have seen this pattern of money flow chaos before... Outflows surge from China, send liquidity needs spiking, which bleeds over into Saudi stress (petrodollar?), causing unwinds in major equity markets (thanks to deleveraging of carry trades) in China and then US stocks...

Chinese stocks are opening down hard:

  • *CHINA CSI 300 INDEX FALLS 4.05%



Hold your breath. Dow futures plunged 100 points on the news...

Your rating: None

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Wed, 01/06/2016 - 21:38 | 7007989 ThaBigPerm
ThaBigPerm's picture

I think there's some bug on ZH ... the last several evenings I've seen the same article appear at the top.  fix plz thx

PPT mgmt

Wed, 01/06/2016 - 21:56 | 7008096 bania
bania's picture

This is all Wi To Lo's fault.

Wed, 01/06/2016 - 22:04 | 7008146 NoDebt
NoDebt's picture

I'm just glad none of this can affect the price of my stawks.  Oh..... no, wait a minute.  Wait, what?

Wed, 01/06/2016 - 22:12 | 7008196 Save_America1st
Save_America1st's picture



eTrade baby loses everything again!


Wed, 01/06/2016 - 22:13 | 7008199 kliguy38
kliguy38's picture

this is not a test.......

Wed, 01/06/2016 - 22:17 | 7008225 froze25
froze25's picture

Oil is going crazy 

Wed, 01/06/2016 - 22:18 | 7008233 Save_America1st
Save_America1st's picture

I gotta wonder though how much of this (if any) might just be the masters coordinating these take-downs together just to blow off some steam from this way over-valued, over-leveraged bullshit that they created?

Wed, 01/06/2016 - 22:20 | 7008240 jcaz
jcaz's picture

Back to the Nike factory, ladies......

Wed, 01/06/2016 - 22:23 | 7008265 johngaltfla
johngaltfla's picture

Shitstorm on CNBC tomorrow morning. They will have to get all the apologists live on air at 0500 to explain this one and get the sheep convinced this is a "buying" opportunity.

It is of course for inverse S&P ultra short ETFs but does anyone think fucktard Mutual Fund managers even know what those are (or options for that matter).

Wed, 01/06/2016 - 22:35 | 7008322 booboo
booboo's picture

stuttering Joe Kernan is on the red phone to Buffets camper trying to get Quick out of warrens milk bath.

Wed, 01/06/2016 - 22:44 | 7008369 Save_America1st
Save_America1st's picture

Hey, yuan a take the day off? ;-)

Wed, 01/06/2016 - 22:57 | 7008440 SuperRay
SuperRay's picture

Women trade stocks in China?!  WTF!!  An oppressive, male dominated oligarchy and the let women trade?  sum ting definitely wong!!

Wed, 01/06/2016 - 23:02 | 7008501 remain calm
remain calm's picture

This is like groundhog day.


Wed, 01/06/2016 - 23:29 | 7008672 Mr. Universe
Mr. Universe's picture

I want a hamburger. No, cheeseburger. I want a hot dog. I want a milkshake. I want potato chips...


You'll get nothing, and like it!

Thu, 01/07/2016 - 00:47 | 7008997 OldPhart
OldPhart's picture

Chinese sell down 7% and five minutes later you want to sell all over again.

Thu, 01/07/2016 - 01:22 | 7009124 KesselRunin12Parsecs
KesselRunin12Parsecs's picture

Irish weather: If you think things are bad now, just wait 5 minutes

Thu, 01/07/2016 - 01:55 | 7009217 Flatchestynerdette
Flatchestynerdette's picture

@OldPhart - 7% yesterday, 7% today, 7% tomorrow....12 days of this and they're down 84%.

DJIA was only dow 1.5% today. I yawned.

Fed will take care of US but this seems a proxy war on China for their island building and no go areas in Pacific.

There will be IMF intervention on China's behalf so it doesn't take out Europe.

Thu, 01/07/2016 - 03:33 | 7009442 Wulfkind
Wulfkind's picture

@OldPhart - 7% yesterday, 7% today, 7% tomorrow...


I guess 777 is the new 666.

Thu, 01/07/2016 - 04:21 | 7009510 fuu
fuu's picture

New trav same as the old trav.

Thu, 01/07/2016 - 04:17 | 7009505 random999
random999's picture

Yes because Im sure China will ask for IMF intervention now that they are doing their best to dump USDs.

In a proxy war you dont ask your enemy for their fiat.

Thu, 01/07/2016 - 00:56 | 7009028 ebworthen
ebworthen's picture


(link opens in new window/tab)

Wed, 01/06/2016 - 22:48 | 7008405 nmewn
nmewn's picture

"Clearly with the turmoil in "the markets" over the last week we need a Stawk Czar!" ;-)

Wed, 01/06/2016 - 22:58 | 7008469 Buck Johnson
Buck Johnson's picture

Major shit storm tomorrow, this isn't good no matter how you paint it. 


Wed, 01/06/2016 - 23:51 | 7008794 Thought Processor
Thought Processor's picture


The chinese markets are sideshow compared to what is really going on in country.  The real news is that real estate in China is, for the first time in a long time, heading down.  The majority of invested dollars within China are in real estate, whether residential (apartment) or commercial.  The amounts invested in non performing real estate meant to simply appreciate or hold value is off the charts crazy.  

So what happens if it stops going up and now goes down several years in a row?  The answer is- no one knows.  The boom has gone on for so long and the imbalances are so great that it virtually ensures one of the largest downside debt cycles in history.  

Now add into this gov't data which is both innacurate and corrupted and for fun top it all off with a centrally managed highly corrupt government which does not have experience dealing with this type of event and what you get will be something like 2008 on steroids.  Even more so when Beijing steps in to cover up or attempts to stem the bleeding.  Their interventions will be riddled with ramifications that the heads in Beijing simply are not fully aware of.

If 2008 was like watching a plane crash then this will be like watching a whole fleet of jumbo jets crashing.  

The Yuan will be cut in half.  Inflation will skyrocket in China.  This will be in part to mask the decline in real estate.  But non-performing assets are still non-perfoming assets.  The debt overhang in China is of epic proportions.

Oh and let's hope they learned a thing or two from the west, like how to create mortgage debt derivitives in order to multipy the actual risk by several magnitudes (I have no idea if this is going on in China, but I would bet that something like it is).

And this doesn't even take into account the underground lending universe there.  Heads will roll. Literally.

Get ready to hear of a lot more stories of people vanishing in China.  Some by choice.  Others not so much.


Thu, 01/07/2016 - 01:37 | 7009166 Squid-puppets a...
Squid-puppets a-go-go's picture

good post. But why inflation? doesnt this all presage deflation in china?

Thu, 01/07/2016 - 01:57 | 7009227 KesselRunin12Parsecs
KesselRunin12Parsecs's picture

Yeah but, maybe they can get 'THE OLYMPICS' again - lol

Thu, 01/07/2016 - 02:25 | 7009296 Thought Processor
Thought Processor's picture

"But why inflation? doesnt this all presage deflation in china?"


Because that's the only way to minimize the damage.  Print your way out.  Just like the FED did.  Banking systems can not function / lend in a longterm deflationary environment.   I'm sure Beijing has been taking notes on the entire FED playbook.  

But they'll put the China twist on it (I don't know what that twist is but then neither does anyone else).



Thu, 01/07/2016 - 23:28 | 7015230 Squid-puppets a...
Squid-puppets a-go-go's picture

but QE only gets bottled up in the financial sector. It cant get through to chinatown.

Unless they're gonna drop helicopter money. 

Thu, 01/07/2016 - 01:20 | 7009118 mtndds
mtndds's picture

Please, this is all TRANSITORY.

Thu, 01/07/2016 - 02:34 | 7009308 Wile-E-Coyote
Wile-E-Coyote's picture

"Chinese traders unsure what to do for the rest of the day" 

Well that's easy go down the pub!

Wed, 01/06/2016 - 23:44 | 7008758 DirkDiggler11
DirkDiggler11's picture

But the expert energy sector guy from Sprott on CNBS just said on Monday to buy oil and energy, it was a great trade !

Great, now Sprott can add sucking ass on the oil trade to his past 4 years of sucking ass on PM's trades.

Timing is everything Eric and Co !

Thu, 01/07/2016 - 08:06 | 7009824 l.kimbot
l.kimbot's picture

THAT, never gets old.  :-)

Wed, 01/06/2016 - 22:13 | 7008201 38BWD22
38BWD22's picture



Maybe, maybe , maybe, now:

"It begins..."

Wed, 01/06/2016 - 22:27 | 7008267 DormRoom
DormRoom's picture

Rehypothecated collateral chains are under stress because agents need to liquidate to shore up USD, as collateral is remarked along the chain with a decline yuan, and there is a shortage of USD.

Thu, 01/07/2016 - 00:43 | 7008979 mkkby
mkkby's picture

Stupid Chinks -- why the fuck is it still legal to sell? 

Fuck'n traitors.  Fix it with a software change.  If you enter a sell order it executes as a market buy.  Traitor instantly converted to a patriot.  National anthem plays on your computer as order executes.

Margin call.  Did someone say margin call?

Wed, 01/06/2016 - 22:24 | 7008272 Wulfkind
Wulfkind's picture

Maybe, maybe , maybe, now:

"It begins..."


Easy big boy.......the tempation is great....but remember, we haven't yet seen all the things the Masters of the Universe can do to prop up the Grand Illusion.  They're running out fast......but not just yet.

In the words of Frankie Goes to Hollywood.  "Relax, don't do it.  When you want to come."

Thu, 01/07/2016 - 02:22 | 7009291 BullyBearish
BullyBearish's picture

The bull$hit has gone on just long enough to load up the wealth for the next phase, which we are now starting--the panic, crash and purchase of beaten down assets at rock-bottom prices...figure it will take 1-3 years...we won't be seeing SPY at 213.78 for many years to come...protect yourselves as there will be HELL to pay

Thu, 01/07/2016 - 13:51 | 7011939 BarkingCat
BarkingCat's picture

>>>>  In the words of Frankie Goes to Hollywood.  "Relax, don't do it.  When you want to come."   <<<


Given that Frankie was a flaming faggot, I htink the choice of song for this event is very appropriate. There will be some torn and bleeding assholes by the time this is over.

Wed, 01/06/2016 - 22:37 | 7008336 gatorengineer
gatorengineer's picture

The CSI is now at Sept 2015 values..... oh my.... Not yet kids.... not yet.....

Wed, 01/06/2016 - 22:57 | 7008457 hairball48
hairball48's picture

@38BW We all live in hope.

Wed, 01/06/2016 - 23:55 | 7008813 cro_maat
cro_maat's picture

Do Chen - As you know it started in 2008 and is just now picking up momentum like one of your ball bearings on the giant slide of Fiat.

Wed, 01/06/2016 - 22:15 | 7008212 Cangaroo.TNT
Cangaroo.TNT's picture

Fucking retarded ZH trolls have been coming out of the woodwork and are going to be out in force the next few days. 

Wed, 01/06/2016 - 22:18 | 7008232 ebworthen
ebworthen's picture

"All is well"  BTFD.  At least computer parts will be cheaper.

Don't think it is enough to save Walmart's bottom line though.

If you own a place in CA you want to sell do it now, hot money leaving China!

Thu, 01/07/2016 - 02:03 | 7009243 Flatchestynerdette
Flatchestynerdette's picture

If the 'hot money" is leaving China is still has to convert and its being devalued daily. That house in California is going to be an RV at the KOA.

Thu, 01/07/2016 - 03:28 | 7009433 sun tzu
sun tzu's picture

I still don't know why those cockheads are so desprate to convince us to sell gold and buy stocks...hmmmm

Wed, 01/06/2016 - 22:58 | 7008466 herkomilchen
herkomilchen's picture

Obviously he needs a reorientation session at party headquarters.  Sum Ting Wong will be assuming his place.

Thu, 01/07/2016 - 00:46 | 7008995 El Cabron
El Cabron's picture

Sure it wasn't Sum Ting Wong?

Thu, 01/07/2016 - 00:50 | 7009003 techpriest
techpriest's picture

You laugh, but I know a Wei Tu Ru, which is roughly pronounced "Way too lew."

Wed, 01/06/2016 - 22:34 | 7008316 stumbLebum
stumbLebum's picture

Good to see China’s markets are able to go down as well as up.  However, the 'circuit breaker' doesn't have the intended effect.  Instead of calming markets, it freaks them out because not everyone can get their trade on.

Do NOT follow this link or you will be banned from the site!