China Stock Market Volatile

Chinese stock market will suspend trading for half an hour if the index falls by 5% according to a proposal by the securities.

A circuit breaker is being planed in China to prevent any further losses on its volatile stock markets.China Stock Market Volatile

According to the new draft regulation, trading would be suspended for 30 minutes, if the market rose or fell by 5%. If the stock index went up or down by 7% or more, trading would be suspended for the day.

The regulation could only be triggered once a day. Circuit breaker in both directions will be conducive to urging excessive transactions. The draft is by security regulators.

These new measures are being taken to over come to grapple with wild fluctuations in the share market, which have fallen 40% since June.

These measures have been rushed in due to the state of market on Tuesday after figures showed that China’s foreign trade fell by 9.7% in August. Data shows that exports for August were down by 6.1% but imports fell a whopping 14.3%. Which raised more concern regarding the strength of the economy. Eight months of this export fell 1.6% and import were down 14.6%.

Shanghai’s index recovered from poor start on Tuesday was up 2% in afternoon trading. Shenzhen component index and Hang Seng in Hong Kong were also up strongly.

Japan Nikkei indexed closed down 2.43%while ko sip indexed settled at 0.2% in Korea.

Trading was much better in Australia where the s&p/asx 200 closed up 1.69% at 5.115 points, due to possible takeover in the energy sector.

The new measurements would help prevent excessive reactions of investors. Most stock market investors in China are individuals which can lead to panic selling.

Yang Delong said the idea shows the governments good intentions. The whole point of the circuit breaker is to prevent future market plunges and stability in the market. Circuit breaker mechanism would allow a cooling period before taking irrational actions.

The stock market are soliciting public opinions on the plan and public have upto 21 September to have their say. Another measurement that has been taken is for investors that hold their stock for over a year will be exempt from a 5% dividend tax.

On Sunday China stock market had stabilised and market transactions are now normal for the most part. China securities regulator said gains on the stock market had been too fast and large, which have formed bubbles. CHINA STOCK MARKET VOLATILE

Chinese stock market will suspend trading for half an hour if the index falls by 5% according to a proposal by the securities.

A circuit breaker is being planed in China to prevent any further losses on its volatile stock markets.

According to the new draft regulation, trading would be suspended for 30 minutes, if the market rose or fell by 5%. If the stock index went up or down by 7% or more, trading would be suspended for the day.

The regulation could only be triggered once a day. Circuit breaker in both directions will be conducive to urging excessive transactions. The draft is by security regulators.

These new measures are being taken to over come to grapple with wild fluctuations in the share market, which have fallen 40% since June.

These measures have been rushed in due to the state of market on Tuesday after figures showed that China’s foreign trade fell by 9.7% in August. Data shows that exports for August were down by 6.1% but imports fell a whopping 14.3%. Which raised more concern regarding the strength of the economy. Eight months of this export fell 1.6% and import were down 14.6%.

Shanghai’s index recovered from poor start on Tuesday was up 2% in afternoon trading. Shenzhen component index and Hang Seng in Hong Kong were also up strongly.

Japan Nikkei indexed closed down 2.43%while ko sip indexed settled at 0.2% in Korea.

Trading was much better in Australia where the s&p/asx 200 closed up 1.69% at 5.115 points, due to possible takeover in the energy sector.

The new measurements would help prevent excessive reactions of investors. Most stock market investors in China are individuals which can lead to panic selling.

Yang Delong said the idea shows the governments good intentions. The whole point of the circuit breaker is to prevent future market plunges and stability in the market. Circuit breaker mechanism would allow a cooling period before taking irrational actions.

The stock market are soliciting public opinions on the plan and public have upto 21 September to have their say. Another measurement that has been taken is for investors that hold their stock for over a year will be exempt from a 5% dividend tax.

CHINA’s LOSS INDIA’S GAIN

With the current state of China’s stock market, which has fallen by 30 percent in few days. Is a opportunity for india as modi indian prime minister see’s it. This is due to the fall in global commodity prices which will benefit India.

 

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