Big Trouble in Little China! Chinese woes drag Asian markets in red

A consecutive fall in manufacturing output since last five months is considered as the trigger for the Chinese collapse today.

Once again Chinese stock markets have hogged the headlines after authorities suspended trading initially for 15 minutes and then for the day after the Shanghai Composite Index (CSI 300) plunged more than 5% at around 11:00 am (IST) and 7% thereafter. The sharp fall in Chinese stocks and halt in trading, trigger widespread selling in other Asian markets, which eventually led to a free fall in all major Asian stock indices.

A consecutive fall in manufacturing output since last five months is considered as the trigger for the Chinese collapse today. The Chinese stock market authorities have introduced a new mechanism with effect from today itself. Under the new mechanism, the stock markets will halt trading for 15 minutes if more than 5% crash occurs. In case the index falls 7%, trading is halted for the day.

India’s BSE Sensex is trading 1.48% lower at 25,772.43 points. On the other hand, Nifty 50 crashed 1.52% to 7,842.25.

Among other Asian stock markets, Japan’s Nikkei 225 index is currently trading 3.15% lower at 18,453 points, Singapore’s Straits Times at 2,836 points (-1.65%), Hong Kong’s Heng Seng at 21,299.70 points (-2.89%), Taiwan’s Taiex at 8,114.26 points (-2.76%), South Korea’s Kospi index at 1,952.15 points (-2.04%), Singapore Nifty (SGX Nifty) is trading 1.35% lower at 7,842.50 points.