China share trading halted after market tumbles more than 7 percent on further currency weakness as government rescue efforts failed to tackle selling of shares. The benchmark Shanghai Composite index fell by 6.9% and Shenzhen Composite fell by more than 8%.Since the shares continued to fall, leading regulators decided to end trading early.All the Asian markets including Sensex, Nikkei and Hang Seng, experience the same fate.
China’s entire equity market was shuttered within half an hour of opening after falling 7 per cent on further currency weakness as government rescue efforts failed to deter the tide of sellers.It has been a disappointed start to the new year, with worries over China shaking the confidence of investors around the world and creating volatility in the market. The big fear is that China’s economy is slowing down, retarding global growth. One factor behind the stock market falls was a manufacturing survey that pointed to more bad news for the Chinese economy.
Market Fall – Causes
Chinese economy has been steadily slowing, making it a less attractive place to invest. China’s fourth-quarter growth is expected to be 6.9 percent. Markets expect the Chinese currency, the renmimbi (RMB), will weaken beyond the 6.5 handle. It is expected that the pressure will continue to weigh on the market in the following days.