One year\\\'s gains in Shanghai market lost in one weekChina's markets finished the day up 2 percent on Friday. But it still wasn't enough to recover significant losses during the week. Two out of five trading days were shut down, thanks to a new circuit breaker mechanism, that's now been suspended.
China’s markets finished the day up 2 percent on Friday. But it still wasn’t enough to recover significant losses during the week. Two out of five trading days were shut down, thanks to a new circuit breaker mechanism, that’s now been suspended.
This week, twice in the course of five days, Chinese markets closed-down early. This, after a 7 percent fall triggered newly-introduced emergency brakes. The automated shutdown mechanism — used in exchanges around the world — was meant to prevent panic-selling by China’s mom-and-pop retail investors.
Many argued that China had set the trigger-levels too low. They may still be tweaked – raised to be on par with indexes elsewhere – and reintroduced later this year. But news that the trading curb would be suspended wasn’t enough to fully reinvigorate the Chinese markets.
Some of Friday’s recovery may have been thanks to China’s central bank, which guided the country’s currency slightly up on Friday. Days of steady devaluation had prompted fears beyond China’s borders that other currencies in the region might be devalued as well, to keep up. But many are still uncertain what all of this means for the health of the world’s second largest economy.
CCTV’s Roee Ruttenberg reports from Washington.
Chief economist Anthony Chan on China’s stock market
For more on China’s stock markets, CCTV America was joined by Anthony Chan. He’s the chief economist for Chase Private Client and is a member of J.P. Morgan’s Global Investment Committee.