China stocks slump 7 percent on opening day of 2016, trading halted for first time

Chinese stock markets tumbled 7 percent in their opening session of 2016 on Monday as weak factory activity surveys and falls in the yuan added to concerns about the struggling economy, forcing exchanges to suspend trade for the first time. Early losses quickly snowballed in the afternoon, with trading suspended around 0530 GMT (12.30 a.m.全部

<article_content id="A61444"> <para id="A61444P680703"> <img><url>https://static.baydn.com/read/media_store/article/0b9f86de077b1fd4ab23f22a5423cde1.png</url><width>817</width><height>545</height></img> </para> <para id="A61444P680706"> <sent id="A61444P680706S1511841"><![CDATA[Chinese stock markets tumbled 7 percent in their opening session of 2016 on Monday as weak factory activity surveys and falls in the yuan added to concerns about the struggling economy, forcing exchanges to suspend trade for the first time.]]></sent> </para> <para id="A61444P680709"> <sent id="A61444P680709S1511844"><![CDATA[Early losses quickly snowballed in the afternoon, with trading suspended around 0530 GMT (12.30 a.m.]]></sent> <sent id="A61444P680709S1511847"><![CDATA[ET), about 90 minutes before the regular close.]]></sent> </para> <para id="A61444P680712"> <sent id="A61444P680712S1511850"><![CDATA[Selling intensified after a brief 15-minute trading halt early in the afternoon when main indexes had shed 5 percent, and activity in Shanghai and Shenzhen was halted for the day soon after.]]></sent> </para> <para id="A61444P680715"> <sent id="A61444P680715S1511853"><![CDATA[It was the first day that the China markets so-called &quot;circuit breakers&quot;, intended to curb volatility, had been in effect.]]></sent> </para> <para id="A61444P680718"> <sent id="A61444P680718S1511856"><![CDATA[The blue-chip CSI300 index .CSI300 ended down 7 percent at 3,470.41 points, while the Shanghai Composite Index .SSEC lost 6.9 percent to 3,296.66.]]></sent> </para> <para id="A61444P680721"> <sent id="A61444P680721S1511859"><![CDATA[Hong Kong's Hang Seng Index .HSI was pulled down 3 percent in response.]]></sent> </para> <para id="A61444P680724"> <sent id="A61444P680724S1511862"><![CDATA[A private survey early in the day showed China's factory activity contracted for the 10th straight month in December, and at a sharper pace than in November.]]></sent> </para> <para id="A61444P680727"> <sent id="A61444P680727S1511865"><![CDATA[An official survey on Friday, which focuses on larger, state-owned firms, showed a fifth month of contraction, though a pick-up in the services sector could cushion the impact on the broader economy.]]></sent> </para> <para id="A61444P680730"> <sent id="A61444P680730S1511868"><![CDATA[Investors also dumped stocks ahead of the imminent expiration of a share sales ban on listed companies' major shareholders, which had been imposed during the market crash last summer.]]></sent> </para> <para id="A61444P680733"> <sent id="A61444P680733S1511871"><![CDATA[&quot;The slump apparently triggered intensified selling, while the triggering of the circuit breaker seems to have heightened panic, as liquidity was suddenly gone and this is something no one has experienced before,&quot; said Gu Yongtao, strategist at Cinda Securities]]></sent> </para> <para id="A61444P680736"> <sent id="A61444P680736S1511874"><![CDATA[&quot;It was a stampede.&rdquo;]]></sent> </para> <para id="A61444P680739"> <sent id="A61444P680739S1511877"><![CDATA[(Reporting by Samuel Shen and Pete Sweeney; Editing by Kim Coghill)]]></sent> </para> </article_content>