(Bloomberg) -- Chinese stock exchanges closed early for theThis will not be a boring year.
second time this week after the CSI 300 Index plunged more than
Trading of shares and index futures was halted by automatic
circuit breakers from about 9:59 a.m. local time. Stocks fell
after China’s central bank weakened the currency’s daily
reference rate by the most since August.
“The yuan’s depreciation has exceeded investors’
expectations,” said Wang Zheng, Shanghai-based chief investment
officer at Jingxi Investment Management Co. “Investors are
getting spooked by the declines, which will spur capital
Under the mechanism which 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 7.2
percent before trading was suspended.
Chinese stocks in Hong Kong, which doesn’t have circuit
breakers, slumped 4.4 percent. The offshore yuan fell to a five-
year low before erasing losses.
If I didn't know better I'd swear China was heading toward a real deal financial meltdown.