Chinese Stocks Plunge, Largest Since Global Financial Crisis

By Ned Kelly

Stocks in Shanghai fell 8.7% at the opening of trading day, while the Shenzhen composite was down 9.13% and the yuan was fixed at its lowest point this year in onshore trade, report the Guardian

The maximum allowed before trading is suspended for the day is 10%. Trading in a whole range of commodities was suspended after losses quickly exceeded the daily limit on Monday. The maximum level of losses known as limit-down in trading parlance was already reached for iron ore, nickel, copper, eggs, palm oil, crude oil and other produce.

Monday was the first trading day after Chinas Spring Festival holiday, which was extended amid an ongoing virus outbreak that has taken more than 300 lives in the country so far. 

This comes despite the Peoples Bank of China announcing Sunday that it will inject RMB1.2 trillion (USD173 billion) worth of liquidity into the markets via open market reverse repo operations. The Chinese central bank said the overall liquidity in the system would be RMB900 billion (USD130 billion) more as compared to the same period last year.

It wasn't doom and gloom for everybody, though shares of Improve Medical, which make face masks, jumped 8.5% in the first five minutes of trading on Monday morning, touching the trading ceiling.

Check back for more on this developing story as it happens.

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[Cover image via Wikimedia]

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