China ceases trading

China stocks halted for the day after sharp plunge

CNN,

6 January, 2016

Trading on Chinese stock markets was halted for the day on Thursday just 30 minutes after the start of trading.

Trading was suspended for 15 minutes after the CSI 300 stock index fell 5%. When trading resumed, the slide continued and within just a few seconds the index was down 7%.

The abrupt decline triggered so-called circuit breakers, which Chinese authorities recently implemented in a bid to tame the country's volatile markets.

It's the second time in four days that China's new circuit breakers have been used.

The People's Bank of China, the country's central bank, responded Thursday by announcing it would inject $10.6 billion into the financial system. That follows a similar announcement on Tuesday when the bank said it would put $20 billion into the markets.

The moves are a bid by the government to juice stocks and calm investors. But observers say they also signal that China's leaders are concerned about the economy.

"Investors recognize that the PBOC's actions serve as confirmation that China's economy is slowing in a meaningful fashion, which has real repercussions on global ... growth," Mike O'Rourke, chief market strategist at JonesTrading, wrote in a note.