In previous news, China suffered losses in the global market shutting down its doors. Just recently, China has shut down its market - again.
China has halted trading quite suddenly for the second time this week. It does not like a good start for the first business week of 2016. The market closed its door after 30 minutes of opening after falling to 7%.
This meltdown happened within the first 15 minutes which triggered another "circuit breaker" like the last time as everone panicked about the Yuan. This second shut-down from China was necessary because of the new rules implemented to avoid panic selling of shares. Though this second instance, the circuit breaker lever was pulled faster than the first time.
Financial analysts and investors are anxious at the state of China's standing in the global market indicating an increasing slow growth.
Now, the Yuan is at its weakest. Chinese savers are losing confidence in the Yuan and have rejected the country's stocks after multiple devaluations by the Chinese central bank. The last recorded fall of the currency was back in March 2011.
That's just strike one for China. The second blow comes as China, being the world's largest oil importer, is under a lot of pressure which means oil prices are struggling world wide. This is not a welcome news since Saudi Arabia has cut its ties with Iran.
This rattled the Asian and European market. Clearly, this is hurting China's edge when its third strike has hit international markets. European markets are suffering from China's crisis pulling the FTSE100 down by 3%. Asian markets ended low with Hong Kong closing at 3% down and Japan's Nikkei at 3.2%, as reported online.
This is another hit for China to gain back economic confidence as the turmoil disrupted global markets. Investors may soon want to invest elsewhere.
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