View more on these topics

China markets shut after 870 seconds of trading

China-Hong-Kong-Asia-700x450.jpg

Trading on the Chinese stock markets was halted for the second time this week, after just 870 seconds of trading.

The circuit-breakers introduced in the New Year were triggered again today after the market fell more than 5 per cent, starting a 15 minute halt to trading.

However, when trading resumed markets fell by another 2 per cent, which means trading is halted for the day.

So far this week the CSI 300 index, the top 300 stocks of the Shanghai and Shenzhen stock markets, has fallen by 12 per cent in total.

The dropping value of the renminbi, which fell to its weakest level in almost five years today, was thought to be behind some of today’s losses.

Monday saw the first market closure thanks to the new circuit breakers, with the losses being attributed mainly to weak factory survey data released over the weekend, as well as steadily weakening yuan.

The rapid closure of the markets today has led to calls for the circuit breakers to be re-thought.

Hargreaves Lansdown head of investment research Mark Dampier says: “Clearly the circuit breaker is having the opposite affect to what is intended and is making things worse. It also stops the market having any chance of bouncing.

“Had it been introduced during 2015, it would have been triggered 20 times. The system doesn’t work and until it is withdrawn or modified we can expect to see further use and perhaps shorter trading periods than we saw last night.”

“The interference by the authorities is simply delaying the inevitable. The market needs to find its own level so we will see more volatility in global markets until it does,” he adds.

Recommended

FCA logo new 3 620x430
1

FCA holds back on inducements due to Mifid II

The FCA has chosen not to publish its findings into inducement deals between providers and advisers as a result of Mifid II. The regulator published final guidance on inducements, including payments to secure distribution and corporate hospitality, in January 2014. Supervisory work on inducements paid to advice firms by providers and fund groups has continued […]

8

State pension campaigners secure Westminster debate

Increases to womens’ state pension age will be debated in the House of Commons later this week after a petition attracted more than 100,000 signatures. The debate will focus on communication of the changes, which has seen the state pension age of women increase from 60 to 66 following successive acts of Parliament in 1995 and […]

14

Policing the market: FCA flags secondary annuities concerns

The creation of a secondary annuities market presents bigger consumer protection concerns than the pension freedoms, the FCA warns, as it sets out the key challenges of policing the reforms. On Tuesday Chancellor George Osborne unveiled details of another pensions overhaul that will allow savers to cash in their annuities from April 2017. The reforms […]

1

Opinion poll

The report (Money Marketing, October 25) that Marlborough Stirling&#39s research has found that 53 per cent of people prefer not to meet their financial adviser in person flies in the face of general perceptions. It also contradicts other (perhaps more disinterested) research studies as well. Typically, you would expect to find that some 70 per […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment