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Chinese shares trade halted after 7% plunge | |
(about 3 hours later) | |
Trading on China's mainland benchmark index - the Shanghai Composite - was closed on Monday after the market dramatically plunged 7%. | |
Trading was initially halted for 15 minutes after the stock market fell by 5%, triggering an automatic 15-minute trading suspension under a new system created to curb volatility. | |
But then shares continued to fall, leading regulators to close the market. | |
A manufacturing survey earlier pointed to more bad news for the economy. | |
The Caixin/Markit purchasing managers' index (PMI) slipped to 48.2 in December, marking tenth consecutive month of shrinking factory activity in the sector. | |
A reading below 50 suggests a contraction in the sector, while anything above 50 suggests growth. | A reading below 50 suggests a contraction in the sector, while anything above 50 suggests growth. |
The private PMI survey, which focuses more on small and medium-sized businesses, came after an official survey on Friday, which looked at larger companies, that suggested a fifth month of shrinking factory activity. | The private PMI survey, which focuses more on small and medium-sized businesses, came after an official survey on Friday, which looked at larger companies, that suggested a fifth month of shrinking factory activity. |
The Shanghai Composite fell 6.9% to 3,296.66 points before trading was halted for the day. | |
Under the new circuit breaker mechanism, moves of 7% from the previous session's close would trigger a trading suspension for the day. | |
Hong Kong's Hang Seng index was down by 2.8% to 21,293.13. | |
Rest of Asia mixed | Rest of Asia mixed |
The rest of the region followed China lower on the start of the new year. | |
Japan's benchmark Nikkei 225 index was down 3.1% to 18,441.24 as a stronger yen also weighed on shares of major exporters. | |
The market is also catching up with last week's declines in the US, after being closed for the last two sessions. | The market is also catching up with last week's declines in the US, after being closed for the last two sessions. |
Australia's S&P/ASX 200 index closed down 0.5% to 5,270.50, while South Korea's Kospi index fell 1.8% to 1,926.61. | |
A jump in oil prices boosted Australia's energy sector with shares of Woodside Petroleum up 3%. | |
Brent crude gained 3%, rising as high as $38.40 after Saudi Arabia's execution of a prominent Shia Muslim cleric ignited tensions in the region. |