7⃣% drop in China🇨🇳 shares, trading stopped‼

  |   India News

China’s benchmark Shanghai Composite index fell🔻 6.9% , the blue-chip CSI 300 Index dropped 🔻7%. Earlier trading had been halted after the stock market fell 5⃣% but shares continued to fall📉, forcing regulators to end trading early. As per China’s🇨🇳 new circuit-breaker mechanism, introduced in Dec, if the previous session’s close moves below 🔻7%, a trading suspension❌ is triggered. One factor behind the stock market falls📉 was the Caixin/Markit purchasing managers' index (PMI), which slipped to 48.2 in Dec - the sector's 🔟th month of shrinking factory activity . According to the BBC's Karishma Vaswani, "Retail investors in the Chinese🇨🇳 stock market are often driven by sentiment😳 and tend to follow the crowd👥. When they hear of some bad news from brokers or their friends, and other people start selling - they start selling💲 too."

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