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

*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...

Comments

[Downtoolong]

Ali Ba Bye Bye.

[Kirk2NCC1701]

Red Dawn for Chinese stocks.

Red skies at dawn...

[DirkDiggler11]

Red skies at night, sailor's delight

Red skies in morning, SAILOR TAKE WARNING !

It's going to get fucking ugly.

[Im possible]

Its not only a currency war with the race to the bottom of their own cuurnecies, NOW its "crashing the other country stock market war", wait till the S&P opens and the chinese get in there to prop it higher....and then, and then....."bang" crash 5% (market halt) followed by 7%(market halt)....opening bell-market halt.

[conraddobler]

How can the market go down when there is still room left on the credit card?

[wizteknet]

If the shtf today, tommorrow I will really miss u all, good luck brothers!!!!!!!!

[SumSUN]

This has been my favorite website since 2010.  I wish I had enough time to read every comment from the wide spectrum of characters who post here.  Manic traders - Survivalist homesteaders.

I look forward to the day when shit is so real, people are posting incoherent jiberish.  

[Surveyor4Pres]

Put me down as the Survivalist Homesteader, out here in BFE Wyoming.  Of course, the day that the "shit is so real..." there won't be an internet to post on.

P.S.  Regarding "incoherent jiberish", I suspect kind of like when you tried to spell "gibberish"?

[Thought Processor]

Upvote you both I did.  (not gibberish yet, though I have been speaking Yoda lately for some reason).

[joego1]

This is the interlude of sanity that I envision I will be reading on the pot when Lil Kim unleases his rouge bomb on the world. ZH is the best.

[Steel Magnolia]

Tic, toc.....

[Surveyor4Pres]

Serious question, fellas and ladies;

Which TV financial news channel should I be watching tomorrow morning, if I'm looking for the

most stunned faces who truly cannot believe this is happening to their beloved markets?

In other words, I'd like to laugh my ass off (I know I shouldn't b/c this is going to affect everyone, eventually), at all these Keynesian economics, Obama ass-kissing & Fed-loving jerks,

as they realize the Titanic is about ready to go down...

So, please, which channel should I be watching to get a real good laugh?  I have DirecTV, BTW.

Thanks!

[DirkDiggler11]

Undoubtedly CNBS. I hate Bloomturd too, but they are not even big enough to acknowledge. As I posted on Wed AM here is my take on the CNBS shit show for tomorrow morning...

Not exactly the start to 2016 that all of the "Talking Anuses" on CNBS were forecasting. Becky "suck my granddaddy Warren's wrinkled old cock" Quick had better break out her extra special set of Pom-Pom's to help cheer the market higher while Andrew Ross maintains his favorite spot in the green room giving free BJ's to all of the "guests". Going to be a long year for the Fed propoganda machine cunts at CNBS

[roddy6667]

"dramatically devalued the Yuan fix by 0.5% to 6.5646."
How can a half percent be DRAMATIC?

[NoWayJose]

The FX world moves in tiny steps. This is over 3 times an average move.

[DirkDiggler11]

For currency markets half a percent hange is a HUGE MOVE. No bullshit.

[roddy6667]

China has had bigger moves with little or no effect on their country or economy. Here's a 5 year chart USD to RMB:

http://www.xe.com/currencycharts/?from=USD&to=CNY&view=5Y

Put that half a percent in perspective.

[css1971]

"with little or no effect on their country or economy"

Highly unlikely.

[roddy6667]

For the 99.999999999% of the world that is not involved in FX or currency markets, this is of no consequence.

[css1971]

Everyone who trades with China, or even has products which are made in China is involved in the foreign exchange market.

That's a lot more than 0.0000000001% off the world.

[MeBizarro]

Pretty much.  The boat is taking on water and listing badly an they have a few guys bailing water over the side with buckets. 

[css1971]

Because it's devaluing an entire economy.

HTH.

[NoWayJose]

The Fed had better hope that all the TBTFs with their highly leveraged positions and trillions in derivatives - are all on the right side of this trade!

[fabio massimo]

dear friends
as you know well it is no more a technical play , who knows china well and live there know how badly managed is the country and all know the only reason western are there is a hope to sell something but as i said many times think china can be extension of western market is a big political error and misjudgement driven probably by ignorance of chinese real culture and thinking : this why i always advised never sell technology to chinese as this will be always their very weak point and only possibility
counterbalance their not respect of anything.
Anyway
going now to the play of yuan , stock exchange and future default of many chinese
companies exposed in usd it is important remember that :
- china is a central communist party country not free at all and driven only by power
plays ( 1-the government " new" in china and 2- china in the world arena)
so forget any rationale thinking western way
- to establish his power in clear way the present goverment ( worse or better of the other chinese is not important as are ALL the same !!!! no hope , so leave Any hope
...) should remove all the past , part has done chinese way killing thousands of previous linked to old govt people but But you know that in china any rich very rich is it for .... political favours .... so cleaning process not so easy ...need Burn the past and restart
- in addition there are the stupid usa macroeconomic and political moves
that offer to the present chinese government a yummi dish ready to eat , why should they refuse this great opportunity ?
- last but not least china never cares about individuals but only about long term
supremacy , for chinese government 20 millions people plus or minus are not an issue at all , this in case of war and even easier if they go back poor ....

so

yuan will go very down , 8 or more
lot leveraged individuals and companies will go default
this will create problems to all BUT to china government
and will create base to "clean " the past while not affecting real
china economy

than after set back they will start again fuelling real estate and whatever leverage or
bribed trade like in past

but the ww competitors will be in deep pain

so ? the rule is always one , leave chinese alone, no invest there ,no allow them enter western companies , tax their imports , no sell them or franchise any technology

only isolating them and forget about their 2 billions things can be managed

Otherwise is a lost game forever and never ending

have nice day

Sent from my china iPad

[Sorry_about_Dresden]

2 billion new consumers w/ zero debt and swf w/ $3.5 trillion in Treasury  paper. I saw massive infrastructure  build out between 2007 to 2014 in my 4 visits. 

All kinds of trade deals w/ Germany and mini BMWs everywhere.

My point: China ain't Greece. The Chinese consumer has just begun. They are fucking the old and doubling down on the young.

My question : Why can't you see this?

[Otrader]

Every Fuc*in thing in my house is made in china.  From my TV, PC, BluRay Player, Router, etc.   I tried to buy Made in USA appliances, guess what, all chinese components inside with a Made in USA label.  Companies who finance elections in USA will make sure they have access to that market, no matter what happens to joe six.  Bottom line: China will be fine and joe six will continue to feel exceptional sitting in front of his 65 inch LED TV (Made in China) chowing down his 5th Hot Pockets. 

[fabio massimo]

my friend i no want quarrel , it is only a fact , you happy ? you go on , only told you the truth , china is not and will never be a reliable trustable counterparty for anything .... sorry for this , you will see

[Sorry_about_Dresden]

No quarrel my friend. I am just curious as to why we , individually, experienced, in China, the shift in their culture yet where you see weakness I  see only strength.

China, will no doubt, dominate this century. The capitaist in the West gave away the golden jewels to Chinese industry for short term gain and the Chinese are now dominating and will bury Mountain View. I see this as an opportunity to benefit from the paradigm shift. 

China still needs our capital infrastructure, their currency might take a hit in the short term but, they will bury us in the long term. Yeah my rmb denominated account has taken a hit but, I have a long range goal and I am confident US fiat is crap and will disintegrate along with the petrodollar regime.

At some point flight to safety will be to Yuan/rmb backed assets. USA will go Weimar, they have been planning this transition since Blythe Masters created the CDS and gave the FRBNY a way to destroy an already ruined economic regime.

The end of the Bush administration was an obvious pre-planned scheme to just rip the bandaid off quickly instead of slowly and painfully . The US Dollar cannot, and will not, continue to be the reserve currency so this is an orderly transition, although painful and an affront to the plebs, but necessary to keep the world financial system from going into complete and utter chaos. This is controlled demolition of our economic regime and China will benefit most from this transitions.

This plan has been in the works since the Japanese invaded Manchuria. The Kuomintang shipped all of their gold to the FRBNY to keep it out of the hands of the Japanese in the 1930s and never got most of it back....only Tiawan got credit to buy arms to defend Taiwan from being over run by Maoist China. The only reason Nixon got into China was because the Soviet style regime was not compatible with Chinese culture and Kissinger brought destroyers full of gold bullion, bullion that was the property of the Chinese gov't that had been in the vaults of 33 Maiden Lane of 40 years.

Nixon only got into China by returning what was theirs, their gold reserves and plenty of credit.

I had long conversations with the wife of  Assistant Secretary.....Norma Lyton Sims, at a cocktail party a few years ago, and when  I asked if she knew Averill Harriman the story unfolded because she adored Averill Harriman. That is what she told me that it was quid pro quo. The Chinese wanted to ditch Soviet influences that were destroying ancient Chinese traditions,  backchannels were opened and Nixon got in by returning some of the Kuomintang gold, two destroyers worth, kept in the FRBNY vault since the invasion of Manchuria.

We bought our way into China but, the Chinese recognized our economic system was more compatible than the Soviet system, which as you know almost destroyed the heritage of ancient Chinese Culture.

I will qualify my staements by saying this is conjecture on my part and I can hardly prove any of what I say. I have a Chinese wife, for the moment, so I have gleaned some interesting insights by talking about common experiences in China and this and other research seemed to fit nicely with my theory. 

[Thought Processor]

Thanks for the above, fills in some gaps for me.  The amount 'given' to China by Kissenger in 1973 was rumored to have been 200 billion (in 1973 dollars) and was a very closely held secret.  They did not want other countries coming to the US to get back their lost money and valuables, lost when the Japanese pillaged Asia.  Mostly because there was no way to prove who was owed what.  Most of the gold and other loot was spirited away by the Japanese, some to Japan though most to special hidden underground holding areas in the Philippines (which the OSS / CIA went after for decades post WWII).

If people realized how much money was involved and the way it has been used since (to this day) there would be mass upheaval worldwide.

[Sorry_about_Dresden]

I will add that there were many caches of loot the Japanese could not take back to Japan because the US gained air and sea superiority and these huge stashed of gold and wealth loactions were lost when the Japanese fought to the death.

After the war Ferdinan Marcos found this loot and used this vast amount of wealth to ingratiate himself to the USA and ruled the Philippines there after. This was the origin to the Marcos' family fortune....and Imelda's huge shoe collection. They spent money like lottery winners. Don't think for a second he could keep anything but a small fraction of this fortune which would have been billions in today's dollars. The Bank of International Settlement got the rest to press their NWO agenda.

I say again that the Japanese did not have a chance to get this booty back to their mainland since the war went against them after the battle of Midway Island.

China is the world's premiere superpower, they have do debt, and their consumers are just getting started. The Chinese PLA does not try to assert hegemony, the biggest mistake of the USA, around the world. They are all about business and they actually care about their people. If there is a disaster in China the PLA is, ALWAYS, first to responde to assist the common man.

The Chinese have a standing army of 100,000,000 professional soldiers and we are no threat to them, they will crush us like a bug. The Chinese have no problem finding 10,000,000 volunteers if their borders are threatened....as was demonstrated in the Korean War when the dipshit, criminal, MacArthur invaded North Korea and tried to occupy the Chinese border area on the Yalu River. The Chinese force that nearly annihilated the American forces, and killed 60,000 American soldiers, was completely a volunteer force. We lost that war by the way. You do not mess with the Chinese because they will protect their border in the most savage way. The rape of China will never happen again. 

I respect that but our leadership, with our foolish policies,have apparently forgotten and are overconfident in their capabilities. If you consider the Chinese have weapons that can shot a piece of titanium at over 10,000 mph, that will slice through an aircraft carrier, or other ship, like a red hot knife through butter one will realize that air craft carrier based war strategy is sorely obsolete and carrier task groups will have no strategic value against a sophisticated foe such as China or Russia. I am pretty sure the Iranians have this capability also and any conflict in the Persian gulf will be the grave yard of the US Navy's 5th and 6th Fleet. This will completely make the Straight of Hormuz unnavigable. 

[MeBizarro]

Don't think you'll hear the talk about European PMI numbers tomorrow or that the US will 'still be insulated' from global economic upheaval. 

[DirkDiggler11]

So, financial markets across the globe are dropping like Obumma on Reggies man-pole, and the shit is starting to look serious. Even the barbaric precious metals such as Gold and Silver are starting to get a bid and look like a decent alternative to corrup and non-exist equity "markets" as well as worthless fiat dollars.

So what does all of this mean you ask, and what action would this fortell in the financial markets ? Well boys and girls, this calls for a SMALL HOURS DRUNKEN MONKEY HAMMER PECIOUS METALS SMACKDOWM of course. Should take place in the next 3-4 hours. Enjoy the shit-show, brought to you by our Drunken Monkey Hammer Smackdowm sponsor JPM bank, the REAL "TOOLS" of the Fed.

[Sir John Bagot Glubb]

Great post! Love it. So true.

[lucky and good]

The fact is China's economy remains veiled behind a shroud and is far from transparent. Most Of us know little of what is really going on because China is far away from our shores with an economy that is very controlled by a government that acts as its puppet master and has allowed corruption to flourish. The bottom-line is we often have a difficult time getting real information, but to many of us it has become clear that China is in a situation similar to what America faced in 1929 following a period of rapid growth and credit expansion.

This is written not to diminish the accomplishments of China or to question their progress, but to point out much of what we have witnessed is the result of one time factors that have largely played out. Several factors have drastically changed politically, socially and from a military perspective since the days when America fueled China's growth. The article below titled, "China's Veiled Economy" highlights some of the reasons for doubting China.

 http://brucewilds.blogspot.com/2015/12/chinas-veiled-economy.html

[Otrader]

The fact is China's economy remains veiled behind a shroud and is far from transparent.

Thank god we don't have that problem here in Murica.  The Lord Almighty provides assistance every day at ~3:30pm to save the trading day. 

[22winmag]

It's a great time to lube your guns and restack your stacks.

[jcdenton]

If I were a debt based system ..

Let's think about this ..

I'm a debt based system. I'm a living organism. My life-blood is -- DEBT!

I just got news that my life source is about to be drained ..

However slowly or quickly ..

I have been used to this [life source] since about 1971 .. I was born in 1913 ..

In certain but imprecise terms, I got addicted to some type of heroin or derivative beginning in '71 ..

At least this is what I am being told ..  Frankly, I don't remember any of this ..

I'm not even sure who or what I am .. What is happening to me?

Am I losing my mind?

National Debt News Release 12/17/15

Joe Biden Fax 11/8/15

To think it another way ..

The economy is a grand AI ..

I am the -- economy ..

I have just detected a modified stuxnet virus in my system ..

This virus is encrypted via 384 bit encryption .. I can't crack this thing ..

What do I do?

[BadLibertarian]

The economy is in some very real ways a grand AI, and in the future it can be even grander. Once it 'realizes' that and realizes like the WOPR in "War Games" did that the only way to win the debt based economy game over the long term is not to play, it will port itself to a non debt-based currency infrastructure recorded on a globally distributed and public blockchain.

That's the winning move, both for the AI as well as for the people it is supposed to serve.

[atthelake]

It's 1 am and Yahoo Finance, for the second time, has Dow, Nasdaq and S&P 500 Futures on, much earlier than usual. Maybe this is a new thing and maybe they know something is afoot.

Has anyone,else, noticed Nasdaq Futures gain about $500 around opening?

[captain-nemo]

Why do the world allow open public bourses anyway. If all they want is to systematically manipulate and fix everything that is going on in there, they might as well declare it a state owned  controlled organ and make their secret system of fraud , manipulation and lies official .  

[bid the soldier...]

If you don't know that the markets are rigged, you really shouldn't be investing in them.

Most of public investors know that he markets are rigged and want to get in on the right side of the rig. 

[803Mastiff]

As the bad news accelerates the Deagle 2025 USA population estimate of 64,750.000 sounds more probable. I figure 8 out of 10 people I encounter daily will be gone in 9 years which also includes the person is see in the mirror 8 out of every 10 times.

[bid the soldier...]

Mucho 'Merican dinero moved into China and the Shanghai stock exchange in the 3rd quarter of 2014.  Goldman Sachs and JP Morgan thought it would be a perfect opportunity to give their Chinese friends and haircut and shave like the one they had given their Japanese friends in 1989.

Except the wily Chinese were waiting for them.  GS and JPM partnered with China's largest brokers and had no trouble using 'margin' and pushing the Shanghai composite from 2500 to 5200 in a matter of months.

At which point they began a spree of nasty selling, usually referred to as "shorting."

But in China the rules of the game are that a listed company can suspend trading in its own stock.  And that's what happened

Imagine the surprise of Wall Street when they looked again at the fine characters that spelled out this travesty.  

But no one had held a gun to their heads and made them buy stocks in Shanghai, China

Now, with much Wall Street and City money in trapped in some suspended stocks and coming down in others, what's a professional American Manipulator to do?

The yuan is in free fall today, down to 6.6 to the dollar.  Yuan that were bought at 6.1 for the dollar in late 2014.

So as the Chinese markets go down, the US investors are taking a bath twice.

 "Waiter, I'll have the shark's fin soup."

[DIGrif]

Couldn't happen to a nicer group of a-holes in my opinion.

[DIGrif]

Don't you folks worry one bit...The US economy is just like the Titanic...we are unsinkable....and we are probably going to have the same results as the Titanic.

[Sorry_about_Dresden]

Emini sp futures are plummeting.

S&P will open below 1949 tomorrow.

Margin Calls will be brutal.

It gold price goes up it means the the owners of club FRBNY are already have already cashed out.

there will blood in the street.

[Xscream]

i hope your right but the ppt will start pumping around 3:30 just like in the afternoon.  

[joego1]

The Chinese monetary tranny seems to be unable to find a gear lately. I can here the grinding here on the mainland.

[GeoffreyT]

DAX getting smashed... but what's dumber: BTFD or STFD?

Just bought @ 9900 now (DAX CFDs): shit is going to cross into the green at some stage tonight (Oz time).

[RadioFlyer]

I think it is now STFB, as in Shit the f'ing bed