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Shanghai shares crumbled from fresh selling on Tuesday as a rout shows no sign of slowing down in the market as investors flee the market. The Shanghai Composite Index opened at 3,004.13 point, down 6.41 per cent, or 205.87 points. The CSI300 index of Shanghai-Shenzhen large cap stocks opens at 3,070.01 , down 6.27 per cent or 205.52points. The Shenzhen Composite Index opens at 1,751.28, down 6.97 per cent or 131.18 points. The NASDAQ-style ChiNext Price Index dropped 6.94 per cent, or 149.30 points to open at 1,996.04..

David Scutt, Business Insider Australia August 17, 2015 The slumber in China’s stock market came to an abrupt end this afternoon with markets plunging into the close. The benchmark Shanghai Composite index finished down 6.12% at 3,749.1 points, its largest percentage decline since July 27. Providing an indication of the price action seen in recent months, the fall was only the sixth-largest percentage decline so far in 2015. Over the past 12 months the index is still up by 67%. All sectors finished deep in the red with telecommunications, IT, industrials, materials, consumer cyclicals and utilities all falling by more...

Shanghai stocks close down over 6% on economy fears By Bill Savadove | AFP – 10 minutes ago. Shanghai stocks closed down more than six percent Tuesday, their biggest fall in three weeks, due to worries over the slowing Chinese economy and the government's commitment to prop up shares, dealers said. The benchmark Shanghai Composite Index slumped 6.15 percent, or 245.51 points, to 3,748.16 on turnover of 722.5 billion yuan ($112.9 billion). It (Other OTC: ITGL - news) was the biggest one-day drop since July 27, when it plunged 8.48 percent -- its sharpest fall in eight years. The Shenzhen...

Mainland markets fall China's Shanghai Composite index accelerated the pace of decline in the afternoon session, closing down 6.12 percent at its lowest level since August 7, as concerns over the yuan eclipsed data which showed monthly home prices up for a third straight month in July, indicating that country's all-important property sector may be finally bottoming. Prior to the market open, the People's Bank of China (PBOC) set the midpoint rate at 6.3966 per dollar, firmer than the previous fix of 6.3969. However, the yuan fell against the greenback, slipping modestly to last change hands at 6.4011. Among the...

The horrific explosions at the industrial port city of Tianjin and China's imploding economy show the government at its worst. China's highly touted "model" is broken and faces its day of reckoning. At last count, Wednesday's explosions in Tianjin had killed 50, including 12 firefighters. More than 500 people were hospitalized, 71 in critical condition, according to CNN. Dozens of people were missing. The government has been heavily criticized for its response and for clamping down on information about the tragedy. But it's been doing the same with the economy for years — exaggerating its growth rate and vibrancy, and...

Growth in industrial production, fixed-asset investment and retail sales all slowed in July, China’s National Bureau of Statistics reported, just days after releasing data showing that exports fell sharply. Economists said the latest figures, along with a stated desire to make exchange rates more market driven, fueled Beijing’s surprise decision to let the yuan fall by 2.8% over Tuesday and Wednesday. “All the numbers are very weak,” “China’s hitting a bit of an air pocket.” ... “We believe new stimulus is being prepared to contain the rising downside risk in the real economy, which otherwise could turn into a hard...

HONG KONG — Chinese stock market regulators have suspended more than 30 trading accounts, including one owned by the brokerage unit of the big American hedge fund Citadel, as they continue trying to stabilize the country’s volatile markets. “We can confirm that while one account managed by Guosen Futures Ltd. — Citadel (Shanghai) Trading Ltd. — has had its trading on the Shenzhen exchange suspended, we continue to otherwise operate normally from our offices, and we continue to comply with all local laws and regulations,” Citadel wrote on Monday in an email. The suspension came amid continued volatility in the...

Markets: China's stock market retreat has turned into a panic and, despite massive intervention, its government is helpless. Fact is, after a long period of super economic growth, China is downshifting to a much lower speed. China's benchmark Shanghai Composite plunged 8.5%, the biggest daily loss since 2007. Of course, the market is largely retracing its extraordinary 150% surge over the last year or so. Still, since their June peak, Chinese stocks have plunged 28%, or roughly $1.9 trillion. Reuters calculates that the government of Xi Jinping has spent close to $800 billion — or nearly 10% of China's total...

Last night, just six weeks after one Chinese farmer Liu Jianguo invested his life savings in the Chinese market, proclaiming "it's a lot easier making money from stocks than farm work," we wondered if it was time for a sequel: It's time for the sequel: how the Chinese farmer bet on stocks and lost everything http://t.co/l1EEAHFiEg— zerohedge (@zerohedge) July 28, 2015 A few hours later we find out that it was because as CNBC reported in its sequel, another farmer has lost it all... and more. As CNBC's Eunice Yoon reports, just a few weeks after his glorious gamble...

It seems like we’re rushing from one crisis to the next these days on the world’s economic stage. Puerto Rico is flailing, Greece is on the brink and now the Chinese stock market is tanking. The first two are relatively minor in terms of their actual economic impact worldwide, the situation in Asia poses a threat to real estate markets, especially in California. In just over three weeks Chinese investors have seen $3 trillion (that’s with a “T”) in equity vanish, despite increasingly desperate measures by the government. That is six times Greece’s entire foreign debt, or 11 years of...

After dozens of separate interventions, manipulations, and central-planning machinations over the past three weeks, China resorted to threats overnight when it called for the arrest of "hostile short sellers." The reason they went full Orwell, this is the great loss of 'wealth' in China's history... China's $2 trillion loss in 17 days is the equivalent of 1 India, or... China has lost 15 Greeces in market cap in three weeks In other words, China has to stop the bleeding before it loses another India... or the socially-unrest citizenry will demand gambling returns elsewhere or, absent hope, demand change...

Here is a brief sample of some of the measures the Chinese government and the PBOC have unleashed in just the past ten days to prop up the crashing market include: a ban on major shareholders, corporate executives, directors from selling stock for 6 monthsfreezing more than half (1400 at last count per Bloomberg) of the listed companies from trading, blocking fund redemptions, forcing companies to invest in the market, halting IPOs, reducing equity transaction fees, providing daily bailouts to the margin lending authority, reducing margin requirements, boosting buybacks endless propaganda by Beijing Bob. The measures are summarized below.But...

WHILE the world worries about Greece, there’s an even bigger problem closer to home: China. A stock market crash there has seen $3.2 trillion wiped from the value of Chinese shares in just three weeks, triggering an emergency response from the government and warnings of “monstrous” public disorder. • LATEST: CHINESE INVESTORS FLEE FOR SAFETY And the effects for Australia could be serious, affecting our key commodity exports and sparking the beginning of a period of recession-like conditions. “State-owned newspapers have used their strongest language yet, telling people ‘not to lose their minds’ and ‘not to bury themselves in horror...

The beauty of markets is that they have a mind of their own. For the Chinese government, this has been a tough pill to swallow. Try as it might, the Chinese government was unable to arrest the decline in the domestic stock market last week. The central bank cut benchmark interest rates and the amount of money banks must keep with it on reserve. A government investment vehicle made it known that it was buying ETFs. The securities regulator eased regulations on margin trading and the Stock Exchange cut transaction fees. Despite this, the benchmark Shanghai Composite Index declined 12%...

In 2011 the biggest fear from the Greek financial crisis was that it would cause a ripple effect throughout the global economy. But despite years given to de-leverage themselves, banks worldwide are still exposed to Greece, carrying more derivatives than ever tied to the tiny European state. Now that the Greek citizens have rejected the austerity measures proposed by the EU, we are facing a real potential of a Greek default, which could trigger a cascade collapse of credit default swaps and cause the implosion of the German central bank. Then, a continent away, we are facing trouble of a...

Looking to bargain hunt the recent plunge in Chinese stocks—bid up in an "enormous speculative frenzy" over the past year—would be like "catching a falling knife," former Morgan Stanley Asia Chairman Stephen Roach said Tuesday, just days after returning from a trip to China. Chinese stocks were volatile again overnight, but closed well off session lows, as investors remained doubtful of the efficacy of Beijing's recent market rescue measures. "The bubble is bursting" and predicting the bottom is anyone's guess, Roach told CNBC's "Squawk Box" in an interview. He added, however, that China's efforts to transform its economy remain unchanged....

Chinese shares sank further Tuesday, defying government efforts to arrest a precipitous fall that has wiped an estimated $3.2 trillion off markets and threatens the world's number two economy. The government over the weekend announced a halt to initial public offerings (IPOs) and moves to pour funds into the market to end three weeks of plunging prices. Analysts say the heavy-handed intervention throws into question the pace of China's economic reforms and the ability of the government to deflate what many describe as a stock market bubble. At midday on Tuesday, the benchmark Shanghai Composite Index was down 3.18 percent,...

HONG KONG — Struggling to respond to precipitous declines on China’s stock markets over the last three weeks, the country’s biggest brokerage firms unveiled a government-endorsed plan on Saturday to buy shares starting on Monday, in a bid to stabilize the markets. The government-controlled Securities Association of China said that 21 big brokerage firms had agreed to set up a fund worth at least 120 billion renminbi, or $19.4 billion, to buy shares in the largest, most stable companies, and would stop liquidating their own portfolios of shares. But some experts said that this might not be enough to stop...

More than two dozen companies in China are postponing initial public offerings and security companies are pledging more than $19 billion for a fund to stabilize the country’s free-falling stock market. The 28 companies, which had obtained permission from China’s securities watchdog for IPOs planned in Shanghai and Shenzhen, said they would postpone them due to recent market fluctuations and refund money already paid, the official Xinhua News agency announced late Saturday. That followed reports that regulators were asking companies to postpone the IPOs. […] The Chinese stock market has been in free-fall for three weeks, losing 28 percent of...

Billionaire investor George Soros told the World Bank this week that the planet is on the verge of a third world war that could arise out of an economic collapse in China. “If there is conflict between China and a military ally of the United States, like Japan, then it is not an exaggeration to say that we are on the threshold of a third world war,” Soros said during a Bretton Woods conference. . . . . Soros said the only solution to the prospect was to allow China to join the IMF’s basket of global currencies so that...