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

Tyler Durden's picture




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

 

 

 

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 - 23:17 | 7008891 Wahooo
Wahooo's picture

Once a sweetheart, now a brain-dead crack whore.

Fri, 01/08/2016 - 16:07 | 7018727 still kicking
still kicking's picture

Fun day in OKC, delisting followed by about 40 earthquakes

Wed, 01/06/2016 - 22:09 | 7008547 Zero-Hegemon
Zero-Hegemon's picture

If China would just round up all their traders maybe their stocks would stop going down every day. You know, kill the market to save it?

/SARCASM

Thu, 01/07/2016 - 02:17 | 7009405 Kiwi Pete
Kiwi Pete's picture

Nothing builds confidence like executing malicious sellers.

Wed, 01/06/2016 - 22:10 | 7008558 Zero-Hegemon
Zero-Hegemon's picture

Been long on DOG, that's an inverse DOW ETF thingy, I think. Time to collect, perhaps.

Wed, 01/06/2016 - 22:12 | 7008565 DeadCatBouncer
DeadCatBouncer's picture

Artificial trading halts are the same as 'temporary' bank closures to halt BANK RUNS.

Both only cause MORE FEAR and worsen the following plunges. They do NOT REMEDY THE UNDERLYING FUNDAMENTAL CAUSES.

The fear of being TRAPPED on a FALLING ELEVATOR. The panic as people beat at the doors and finally the stampede when the doors are eventually opened.

Wed, 01/06/2016 - 22:29 | 7008673 Surveyor4Pres
Surveyor4Pres's picture

Two Words:

Fundamental transformation.

Thu, 01/07/2016 - 05:54 | 7009688 css1971
css1971's picture

One day the market will break permanently.

Wed, 01/06/2016 - 22:12 | 7008566 thismarketisrigged
thismarketisrigged's picture

im sure these fuckers would close the ''markets'' if it were up 7 percent. NOT

 

WHAT A FUCKING JOKE. THESE ASSHOLES DONT REALIZE IT ONLY WORSENS THE PROBLEM, NOT SOLVES IT

Wed, 01/06/2016 - 22:15 | 7008582 xlt77
xlt77's picture

Problem in China 80% of the traders are retail.... they are screwed, exactly the scenario in 1929 btw...

Wed, 01/06/2016 - 22:56 | 7008818 franzpick
franzpick's picture

Problem with China now is also the impending death of the retail consumer. That smog people see everywhere? It's actually the financial twilight zone, about to engulf the entire country, for years.

Thu, 01/07/2016 - 05:54 | 7009685 css1971
css1971's picture

Not necessarily. They could let it happen quickly, get out of the way and allow people to pick up the pieces afterwords. Over in a year...

LOL.

Wed, 01/06/2016 - 22:13 | 7008574 xlt77
xlt77's picture

2000 first week trading down 4% 2008 first week trading down 3.5%  so far DJI down 3.2% as of today (Wednesday) after tomorrows trading will be inline with the other 2, does not bode well for the first q at least, probably a 20% correction in the cards coming, once the earnigns start coming (or lack of earnings) it will start to get really ugly....  

Wed, 01/06/2016 - 22:14 | 7008575 razorthin
razorthin's picture

The shit-fan irony is that China may now actually have to sell physical gold.  Don't celebrate just yet.

Wed, 01/06/2016 - 22:33 | 7008688 DirkDiggler11
DirkDiggler11's picture

Guaranteed they will sell worthless US paper first, and if memory serves me correct they own just a bit ...

Thu, 01/07/2016 - 00:03 | 7009055 Surveyor4Pres
Surveyor4Pres's picture

I'm sure that Yellen and the US will buy it back, at a discount, no less.  /sarc

Wed, 01/06/2016 - 22:16 | 7008590 the not so migh...
the not so mighty maximiza's picture

how many halts will it take for...NIRVANNA!!!!!

Wed, 01/06/2016 - 22:28 | 7008656 Surveyor4Pres
Surveyor4Pres's picture

How many Communists does it take to create a Utopia?

Wed, 01/06/2016 - 23:54 | 7009020 tarabel
tarabel's picture

 

 

Are you talkiing live ones or dead ones? It does make a difference, you know.

Thu, 01/07/2016 - 00:01 | 7009048 Surveyor4Pres
Surveyor4Pres's picture

Good point.  I think history shows that you need a few of the former and tons of the latter.

Wed, 01/06/2016 - 22:20 | 7008616 Oddlemeyer_AU
Oddlemeyer_AU's picture

WTI = 33.16 and falling . . .

 

Wed, 01/06/2016 - 22:21 | 7008621 Sequoia
Sequoia's picture

Looks like a China in a bull shop

Wed, 01/06/2016 - 22:21 | 7008622 Sequoia
Sequoia's picture

Looks like a China in a bull shop

Wed, 01/06/2016 - 22:21 | 7008623 Sequoia
Sequoia's picture

Looks like a China in a bull shop

Thu, 01/07/2016 - 00:31 | 7009150 Kirk2NCC1701
Kirk2NCC1701's picture

More like China in a Bull stop.

Thu, 01/07/2016 - 01:14 | 7009269 JMO50
JMO50's picture

You can say that again...

Wed, 01/06/2016 - 22:30 | 7008631 wizteknet
wizteknet's picture

Fk the chinese fking us people, come on wake up dudes china nk wants a war, give it to them...... guns

Wed, 01/06/2016 - 22:27 | 7008648 Surveyor4Pres
Surveyor4Pres's picture

I think I read somewhere, recently (ZH), that the order went out to "sell the rallies".

If that's true, then I think TPTB have decided to finally burn this motherf*cker down?

Just as King Obama declares laws against the 2nd Amendment (1st Amendment is next, 4th Amendment went bye-bye post Boston Marathon Bombing).

Wed, 01/06/2016 - 22:27 | 7008652 homiegot
homiegot's picture

Ho lee fuk

Thu, 01/07/2016 - 00:14 | 7009091 o r c k
o r c k's picture

Long Shorts  (a deal on cut-offs)

Wed, 01/06/2016 - 22:34 | 7008684 khakuda
khakuda's picture

It will be interesting to see if this is finally the beginning of the loss of control by central planners globally who have manipulated markets for so many years now. History tells us that the day will come when the levee finally breaks, the central planners lose control and the markets finally clear. Only then can things begin to heal. The amount of capital misallocation globally from the developed to the emerging markets is stunning.

In the United States I sit in awe watching 0% VA loans, subprime auto loans, record high real estate valuations, and record high stock and bond prices as a result of a sociopathic Federal Reserve board that just loves their bubbles. All this is going on while the movie The Big Short tells us how stupid we were not to see the last bubble. And Bill Clinton may be back in the White House banging interns.

I just can't take it anymore.

Wed, 01/06/2016 - 22:40 | 7008742 razorthin
razorthin's picture

I wonder if our rapidly becoming a world of autistics (like Michael Burry) is natural selection at work, immunizing us from these central planning mind fuckers.

Thu, 01/07/2016 - 01:09 | 7009260 FreedomGuy
FreedomGuy's picture

I kind of wondered the same thing as I watched the Big Short. It is like Baum and Burry were innoculated against the lemming financial impulses.

What got me is that essentially nothing changed. The same morons, intellectually and morally deficient people are mostly still there.

I got my home equity loan last year. Decided not to upgrade and told the realtors it was going to happen again. All but two thought I was just a pessimist.

Wed, 01/06/2016 - 22:34 | 7008696 romario
romario's picture

Game over, stocks down, gold up 0,0002%, ZH wins

Wed, 01/06/2016 - 22:38 | 7008725 yogibear
yogibear's picture

Maybe the Fed and the PPT can help China as well since they love to print and hide these off-balance sheet.

Wed, 01/06/2016 - 22:40 | 7008738 Surveyor4Pres
Surveyor4Pres's picture

American Company CEO's, overseas, are panicking and calling their HR departments:

"Quick, hire as many skilled factory laborers and skilled programmers as you can, today, back in the States!  We've got to bring the jobs back to America before it's too late!"

HR response:

"Sir, there aren't any skilled laborers left, and all the recent college-grad US programmers want to do is create driverless cars, build games for XBOX, and more apps for your stupid phones.  Sorry, sir.  You'd better sell your helicopter while there's still a buyer out there who can afford it."

I'm not sure if I'm trying to be cynical?  This just kind of popped into my head.

I guess I'll let the up / down votes decide whether I was right about anything here, or not.

Wed, 01/06/2016 - 22:52 | 7008797 I AM SULLY
I AM SULLY's picture

Most of the really shitty code i've had to fix in recent years? - written by Indian and Chinese programmers.

(Russians are mostly decent at coding)

(Chinese are the worst)

Wed, 01/06/2016 - 22:59 | 7008835 Surveyor4Pres
Surveyor4Pres's picture

Lucky for me, all the code I write is 100% my own.  Lately, I've been working on entirely new stuff using MVC 5 and Azure sites.  Pretty enjoyable, actually, after spending years creating 100% full-blown Windows applications.

Wed, 01/06/2016 - 22:44 | 7008763 FX223
FX223's picture

Open box of mags...drill out limiting pin...load 30 rounds repeat...

 

Okay, I'm ready shtf!

Wed, 01/06/2016 - 22:55 | 7008816 Surveyor4Pres
Surveyor4Pres's picture

What limiting pin?  All my PMAGS are 30 rounds and loaded with M855 62gr 5.56x45mm steel penetrator green tips!

Wed, 01/06/2016 - 23:15 | 7008882 R19
R19's picture

Limiting rivets, etc. are for those of us in the Communist Republik of Kalifornia.

Wed, 01/06/2016 - 22:46 | 7008770 robertocarlos
robertocarlos's picture

Good thing my gold teef are about to fall out. God damn hockey sticks.

Wed, 01/06/2016 - 22:50 | 7008784 surf@jm
surf@jm's picture

New rules.......Major shareholders can only sell 1%, and must give 15 days written notice........Ain`t communism grand?.....

The marxocrats will have an orgasm over such control of a market in China.....

Wed, 01/06/2016 - 23:51 | 7009011 Really20
Really20's picture

The entire basis of the system is rotten. No country, whatever its economic system claims to be, can long survive if the supply of money and debt grows exponentially. At some point, the real economy grows more slowly than the fake paper economy, and claims on wealth dwarf the actual physical wealth itself (factories, farmland, mines, vehicles, etc.). The problem stretches much further back than the "marxocrats" or the Republicans.

Wed, 01/06/2016 - 22:50 | 7008787 I AM SULLY
I AM SULLY's picture

The dawn came late, and the breakfast had to wait ...

Fellows it's too rough to feed ya ...

Fellas, it's been good to know ya ...

https://www.youtube.com/watch?v=K6DUFPNILvM

Wed, 01/06/2016 - 23:00 | 7008822 Petrus Romanus
Petrus Romanus's picture

HA HA! Die you dirty commies.......Um.......Wait..........What? Fuck, my 401k just lost most of its' value. Hello retirement at 95YO. Hooray! Keep pushing that paper, daddy needs some ALPO!

Wed, 01/06/2016 - 23:05 | 7008849 db51
db51's picture

lmfao.....Alpo.....WTF

Thu, 01/07/2016 - 01:58 | 7009364 joego1
joego1's picture

Made in America Arf!

Wed, 01/06/2016 - 23:09 | 7008864 Wahooo
Wahooo's picture

I'll be fighting our cat over the Friskies Tasty Treasures. Made with real bacon, you know.

Wed, 01/06/2016 - 23:51 | 7009012 Dragon HAwk
Dragon HAwk's picture

I'll be eating cat.. my neighbor on the other hand will be eating left over cat food..

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