In what seems to be a repeat performance, China's stocks were suspended from all trade on Thursday after the CSI300 tumbled more than 7 percent in early trade. The severe drop triggered the market's circuit breaker to kick in for a second time this week.
The People's Bank of China surprised markets by setting the official midpoint rate on the currency at 6.5646 yuan per dollar, 0.5 percent weaker than the day before and the biggest daily drop since last August, when an abrupt near 2 percent devaluation of the currency also roiled markets. It is also the lowest rate since March 2011,
Stock markets across Asia reacted accordingly continuing their weekly plunge with a weaker open amid concerns over China's plummeting currency and economic slowdown as well as falling oil prices.
15 Minutes of Trade
In 15 minutes of trading time before the time of the halt, the Shanghai Composite had tumbled 7.32 percent while the Shenzhen Composite plummeted 8.34 percent. The CSI300, the benchmark index against which China's new circuit breakers are set, plunged 7.21 percent. When the CS1300 index rises or falls 5 percent, the market halts all trade for 15 minutes. If it subsequently falls by 7 percent, trading is suspended for the rest of the day.
In addition to the shutdown, and in an attempt to stabilize markets, China's securities regulator issued new rules to restrict the percentage of shares major shareholders in listed companies can sell every three months and cannot sell more than 1 percent of a company's share in that period.
The new measures came into effect before the six-month share reduction ban on large shareholders is set to expire Friday.