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

Submitted by Tyler Durden on 01/06/2016 23:55 -0500

*CHINA STOCKS HALTED FOR REST OF DAY AFTER CSI 300 TUMBLES 7%

Chinese traders unsure what to do for the rest of the day pic.twitter.com/iZ3Vo17bAa

— zerohedge (@zerohedge) January 7, 2016

"I won't short the CSI 300 again I promise" pic.twitter.com/OfxIqvFfEo

— Stalingrad & Poorski (@Stalingrad_Poor) January 7, 2016

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!!

* * *

*CHINA STOCK SLUMP TRIGGERS TRADING HALT AS CSI 300 FALLS 5%

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:

*SHANGHAI COMPOSITE INDEX FALLS 4.01%
*SHANGHAI COMPOSITE EXTENDS DROP TO 10% BELOW DECEMBER HIGH
*HANG SENG CHINA ENTERPRISES INDEX FALLS 3.03%
*CHINA CSI 300 INDEX FALLS 4.05%

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

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Wed, 01/06/2016 - 22:08 | 7008534 HungryPorkChop

Release The Kraken!!!

Wed, 01/06/2016 - 23:50 | 7009007 Stainless Steel Rat

6 oz. Kraken
2 tsp. Lemon Juice
2 Tbsp. Hazelnut Coffee Sweetener
Ice and water to taste.
Rinse and repeat.

Thu, 01/07/2016 - 08:39 | 7010230 E.F. Mutton

Is that free-range, fair-trade, dolphin-free Kraken?

Thu, 01/07/2016 - 01:06 | 7009252 Flatchestynerdette

@HPC - I upvoted you because it made me giggle.

Wed, 01/06/2016 - 21:37 | 7008338 ABCDEF123456

Mine has done that in the past as well...

Manually type in the URL and when ZH page loads, scroll to the bottom and make sure you are on the first page.

Wed, 01/06/2016 - 23:20 | 7008899 StackShinyStuff

Could you be dumber Snake?

Wed, 01/06/2016 - 22:03 | 7008504 db51

Sorry....but I had to down vote the PPT Management. lmao. Carry on

Wed, 01/06/2016 - 21:43 | 7008364 stumbLebum

The rubble - apparently some call it the 'ruble' - broke 75/dollar tonight, dum-dums. Vlad asked that you boys send more greenbacks his way ASAP.

(Just an FYI, he prefers the Western Union on Ulitsa Tverskaya because the hoes are demanding Obama bux, not the native currency.)

Wed, 01/06/2016 - 22:52 | 7008798 Hohum

Russia, USA, Saudi Arabia, you name it. It's F Troop.

Thu, 01/07/2016 - 01:09 | 7009256 Flatchestynerdette

I don't think many here remember that show.

Thu, 01/07/2016 - 03:52 | 7009545 Element

Corporal Agarn! Jane!

Highlight of my day.

Wed, 01/06/2016 - 23:46 | 7008994 Max Steel

Where the value of ruble going against dollar does not matter much but for trolls like you it does as if world is falling without dollar. Lol. Russia with import substitution has sparked its economy meanwhile their inflation rate is fine unlike what western gloom doom idiots like you wants to believe. Rest talking about hoes ch3ck our site again Ukrainian brides are looming in much great number than russians.

Thu, 01/07/2016 - 03:29 | 7009470 Element

"Lol. Russia with import substitution has sparked its economy meanwhile their inflation rate is fine unlike what western gloom doom idiots like you wants to believe."

Oh, you and your Russian troll delusion complex again? Well let's see what the worst case predictions are for Russia, and where Russia actually is traveling with respect to those:

-----

Seeking Alpha:

Of Those Russian GDP 2016 Forecasts

Dec. 21, 2015 5:07 AM ET|

In my recent column for Slon.ru, I quipped that in the case of the Russian economy, forecasts for 2016 growth rates might just as well be taken from the fortune tellers, as there are too many moving factors driving the economy, all of which are virtually impossible to forecast.

Now, h/t to @JoMichell, we have a picture of "predictability" of one key driver of the Russian economy - oil prices. Please keep in mind, these are Brent prices (Urals grade predictability is even lower, as Urals-Brent spread is subject to further uncertainty, including geopolitical risks and substitution risks, as discussed in my Slon.ru column).

So, here is a chart showing IMF forecasts for Brent prices issued back in June 2015:

Note that in the above, the least probable downside scenario is for oil above USD 40 per barrel through 2015. Alas, the least probable forecast is not exactly the lower bound for reality:

https://staticseekingalpha.a.ssl.fastly.net/uploads/2015/12/21/saupload_...

So, here we have it: less than 6 months since the forecast was out, and the least probable worst-case scenario has been breached already. Good luck pinning Russian GDP forecasts down...

http://seekingalpha.com/article/3767526-of-those-russian-gdp-2016-forecasts

-----

Prior Prediction:

Russia GDP to Shrink 3% in 2015, Economy Minister Says
Low Oil Prices, $115 Billion Capital Outflow Cited; Inflation Forecast Raised to 12%
By Olga Razumovskaya
Jan. 31, 2015 9:44 a.m. ET

Actual recession is far worse: GDP -4.1% Q3 2015 and Inflation (CPI) +12.9% 2015

-----

So Russia's economy is already in deep trouble, and no one knows how far Gross Domestic Product will actually fall this year, or how bad its budget deficits will blow out, and reserves will be hurt.

But it will apparently fall well below the IMF's worst case predictions from seven months ago. No one even thinks they can determine how bad the economic and financial damage will become.

The really telling thing about the Russian economic data present on the 'Economy of Russia' Wiki Page is the systematic exclusion of data from the points beyond where it began to sharply drop, in recent years, such is the state of systematic denial and attempts to hide the sharp nature of the economic contraction.

"A spoon full of sugar makes helps medicine go down" - Mary Poppins

Wed, 01/06/2016 - 21:47 | 7008390 PlayMoney

Get the dude puking green ready for tommorrows closing article.

Wed, 01/06/2016 - 21:52 | 7008421 PersonalRespons...

Wait wait wait, what am I missing here. They devalue which makes their money worth less, not worthless, so the value of company shares should be worth more, would take more money (money lol) to buy. Right? Why are the stocks going down. Don't they have GM, GE, FB, IBM... what the hell do they base their indexes on where the .gov can't pump it? Something smells fishy.

Wed, 01/06/2016 - 22:06 | 7008528 stumbLebum

Zero Hedge has no sense of proportionality. It's just as apt to describe a 1% drop in the ISM manufacturing index as a "plunge" as a 7% drop in this Chinese index. Good grief....

Wed, 01/06/2016 - 22:24 | 7008638 Cangaroo.TNT

Case in point....

Wed, 01/06/2016 - 22:43 | 7008751 mayhem_korner

Apparently you are not familiar with the concept of context. Maybe you'll get to that in third grade next year.

Wed, 01/06/2016 - 23:16 | 7008875 jeff montanye

it could be a language problem. he appears to be french. or, possibly, troll.

Thu, 01/07/2016 - 00:58 | 7009226 Tall Tom

He appears to be AmerikanPatriot with his anti-Vlad speak.

He will be gone again soon.

Wed, 01/06/2016 - 23:15 | 7008885 Tall Tom

A incline is a slow advance upgrade.

A decline is a slow regression downgrade.

A PLUNGE is a fall off of a Cliff.

This morning the Dow Jones Industrials plunged deeply. 180 point or so were wiped out in mere minutes. The chart appeared as a CLIFF.

Afterwards the DJIA experienced some minor corrections and had some hills and valleys. But for awhile the was a constant decline...followed by some hills and vallyes.

Then after the Fed Minutes were released there was a period of strk madness with lots of volatility.

Then after that was the 3:15 RAMP where the DJIA surged up a wall of worry.

Have you ever heard the phrase, "Climbing a WALL of Worry"

That picture appears as a cliff in my mind, an obstacle to be overcome.

It seems as if you have never followed the markets as you are ignorant of the terminology.

This is a FINANCIAL Website after all.

And they are not here necessarily to educate you about trading.

So can you answer just one direct question?

If you are not a trader in the markets, and it is obvious that you are not as you do not understand the picturesque terminology, THEN JUST WHY IN THE HELL ARE YOU HERE???

Other than that...Get of of Mr. Tyler Durden's porch. Go away. Leave. You are not wanted at Tyler's house. You will not make it here. There are other places.

(And for those of you who know what I am echoing...Shhhhhh.....I will handle any junks. Remember the First Rule.)

Wed, 01/06/2016 - 23:22 | 7008912 StackShinyStuff

And the second rule...

Thu, 01/07/2016 - 00:54 | 7009215 Tall Tom

LOL

Thu, 01/07/2016 - 00:59 | 7009232 KesselRunin12Parsecs

on a long enough timeline the proportionality of everything drops to zero

Thu, 01/07/2016 - 00:03 | 7009057 Badsamm

Does it come with air filter and freshner?

Thu, 01/07/2016 - 00:03 | 7009058 Badsamm

Does it come with air filter and freshner?

Wed, 01/06/2016 - 20:28 | 7007919 HedgeAccordingly

why

Wed, 01/06/2016 - 20:51 | 7007969 Hitlery_4_Dictator

LOL I just posted this in CNN money.

"Can we get something cleared up for me so I know for next time? Last year people stopped buying because it was too cold, now retail is suffering because it's too warm. I need to know what to do. Should I stay home when it's cold or warm? I don't want to screw up the narrative for the next month when sales crash again. Thanks"

LOL some moron actually tried to answer that ridiclous question. WOW, some real idiots on CNN - she can't even spell "weather" right, LOL

@BuckobamaNOW "It's the economy honestly, the whether blaming is just an excuse. I can assure you that Macy's hasn't done well all year long."

My responces to that

redvaldez199 I know but every year since 2009 CNN and the MSM use weather as a cover for bad economic data. I wish at the very least they could be consistent and pick either cold or warm, not both. It makes them look bad and suspicious.
Delete

LikeReplyo

@redvaldez199 Can I still blame Bush or is that passe now? I'd love to blame Obama but I still think it's Bush's fault, I'm not sure why it's his fault however, I just hate conservatives. I do know it's not cool to blame the dictator for anything, so I can't do that. Can Janet Yellen save us? I mean he did choose her for arguably the most important job in the developed world? Obama's smart so he must have picked a good FED chair right? Edit (in 5 minutes)

Wed, 01/06/2016 - 21:00 | 7008120 commishbob

@Hitlery - excellent trolling. Well-done.

Wed, 01/06/2016 - 21:10 | 7008184 Hitlery_4_Dictator

LOL thanks, I pride myself on being an expert troll. Now my recent posts are "pending" at CNN. I fear I have been banned. LOL

Wed, 01/06/2016 - 21:14 | 7008203 kliguy38

wear the ban with pride......

Wed, 01/06/2016 - 21:26 | 7008242 Hitlery_4_Dictator

I'm still in it! Here;s the tread, help me out. http://money.cnn.com/2016/01/06/investing/macys-cuts-3000-jobs-holiday-s...

It continues. Some loser just posted this -

"Just a little confused? Ok let me help.

In 2009 when Obama took office he inherited the worst recession since the Great Depression. After getting the stimulus passed over Republican objection he ended the loss of over six hundred thousand jobs per month and restored growth to both GDP and the Stock Market.

As for the Fed, when Republicans cut off the further stimulus needed for a full recovery the Fed stepped in with QE to keep the recovery going. One thing Republicans did get was "99% of what we wanted" in the 2011 debt ceiling deal. A week later we lost our AAA rating.

As for the George W Bush issue, Democrats are proud to talk about our former Presidents. We can well understand if Republicans don't want to hear a word about their former Presidents.

That help?"

@DustinG "That clears things up. Thanks. I'm just trying to figure out who to blame as stocks crash. I mean I dislike both R's and D's as they are one and the same. This bear market is going to be worse than 2008/2009, so we have to blame someone. I'm thinking I wish I could invest in Solyndra, but they no longer exist. I guess I'll just go for APPL. So what, it broke 100, I'm sure it will bounce right back. Thank God we have Yellen and the PPT to hold things together. Fingers crossed."

his responce - "@BuckobamaNOW

Stocks are not crashing. We have had a near record seven years of growth in the stock market. What you are seeing is a correction.

Funny that you claim to be independent. Where were you all those 70+ months that we saw growth in the Stock Market? I guess your Obama bashing would have made you look silly then."

"@DustinG Thanks I know, I'm a huge sucker. Stocks are doing fine, I'm not worried BTFD - I know, I know. Trust me, I get it. But you still have not answered my original question, when should I stay home - when it's cold or when it's warm? I need to get this right. I don't want to screw up the narrative. Thanks again."

Wed, 01/06/2016 - 21:42 | 7008357 AdolfSchicklgruber

At this point its time to cut and run. He just went full retard.

By the way, I liked your earlier post on another article. THIS IS GETTING EXCITING. about a dozen times. Haha... I AGREE HOLY SHIT THIS IS GETTING REAL!!!! 15 PERCENT DIP IN CHINA in 3 days?!!???? I may head to Gander Mountain for the 100th time and buy some more ammo and freeze dried food.

Its been fun watching everyone on here and participating in our chats. If the EMP hits/power goes down good luck to you all.

Wed, 01/06/2016 - 21:49 | 7008376 Hitlery_4_Dictator

Thnaks. May God bless us all in these times. If an EMP happens I hope to see you up above. You are like me, I've single handily kept Gander Mountain in business I think. LOL

Wed, 01/06/2016 - 22:01 | 7008495 kliguy38

good luck guys ......when it does come, and it will, we'll long for the faux pump days again......unfortunately

Wed, 01/06/2016 - 22:21 | 7008618 Automatic Choke