Trading on Chinese stock exchanges stopped after falling of indexes more than on 7%

SHANGHAI, January 7. /Corr. Artem Churkin/. Trading on the stock exchanges in mainland China were 7 Anwar stopped less than half an hour after opening due to strong drop in prices.

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The Shanghai Composite index, reflecting the situation on the Shanghai stock exchange, lost 7,32%, obvalivat 3115,89 to the level of the item. The Shenzhen Component index, which is the main indicator of business activity on the trading floor in Shenzhen, fell by 8.35 per cent to the value of the item 10745,47.

The cause of panic among investors was the decrease in the Central Bank official rate of the Chinese currency to its lowest since last August in 6,5646 value of the yuan to the dollar.

“The scale of the devaluation of the RMB to exceed the expectations of investors, who begin to fear of capital outflow,” said Jingxi Investment Management analyst Wang Zheng.

Investors fear a repeat of the crisis

Have been since the beginning of the year the new stock rules fall CSI 300 index, which reflects the value of the shares of the 300 largest public companies, more than 7% means the suspension of trading until the end of the day. Today, the CSI 300 fell by 7.21%.

“After last year’s upheavals, investors fear a repeat of the crisis. The monetary authorities will be difficult to restore trust,” – says the analyst Eagle Investment Peter Zhao.

During the first 15 minutes of the session were suspended trading of shares of more than 1.6 thousand companies, the decline exceeded 10%.