China's Stock Market Panic down 7.1% ... Trading has been fully halted
The Voice of Seoul
Posted on Thursday, January 07, 2016
Trading in Chinese stocks has been fully halted in just 20 minutes after the stock market was open.
Although China's circuit-breaker was implemented, Chinese stock price fell more than 7%. It is a mechanism that stops trading in stock markets for 15 minutes when stock price fluctuates violently.
According to report, Shanghai Stock Exchange Composite Index has been abruptly declined right after Shanghai Stock Exchange was open. It has been temporarily halted as stock price tumbled down over 4% than the previous close. Although it reopened in 15 minutes, it dropped more. Thus, trading has been totally suspended.
China's stock market falls were created by devaluation of the yuan, the country's currency, for the eighth day running by the People's Bank of China. They set the official midpoint rate on the yuan at 6.5646 against the US dollar, 0.51 percent weaker than the previous fix. If the exchange rate is higher, the value of the country's currency is lower.
It is the highest level since the last August devaluation. The value of the yuan inside and outside the country is devalued largely.
The exchange rate of the yuan outside the country is devalued to 6.7310 per dollar. As the exchange rate of the yuan inside the country is devalued to 6.5619, difference between the two is the largest level in the latest 5 years.
A slump in global oil prices has had a negative impact the falls in China's stock markets.
Global oil prices fell largely on the day.
The price of WTI(Western Texas Intermediate) as traded on the NYMEX(New York Mercantile Exchange) for delivery in February 2016 closed at $33.97 per barrel, 5.6% down, its lowest since February 2004.