Chinese stock markets suspended for second time in a week

    Chinese stock markets suspended for second time in a week

    Jan 7, Beijing: Chinese stock markets tumbled by more than seven percent for the second time this week, forcing exchanges to suspend trading for the day.

    The official Xinhua news agency said on Thursday that trading on the Shanghai and Shenzhen stock exchanges was frozen for the day.

    The "circuit breaker" rule, a mechanism introduced to stem volatility in the market, was triggered in the first 30 minutes of trading, BBC news report said.

    Investors are nervous after the central bank moved to weaken the yuan.

    This indicates that authorities are looking to boost exports as China's economy is slowing more than expected.

    Beijing has been trying to restore investor confidence after markets plunged in June following huge gains in the preceding year. The market meltdown has prompted a panicked, multibillion-dollar government intervention.

    The benchmark Shanghai Composite Index tumbled 7.3 percent to 3,115.89 before trading was halted.

    The smaller Shenzhen Composite Index slumped 8.3 percent to 1,955.88.

    The Oslo Times


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