US Traded Chinese Stocks to Have a Better Start as Shares Edged Down due to Home Market Slump
US traded Chinese stocks will get a better start this year as shares edged down last Monday as parts were dragged by the slump in the home market. China’s biggest online retailer JD.com decreased by a record of 8.5 percent to $29.53 as Alibaba Group Holdings fell also by 5.6 percent to $76.69 while other e-commerce platforms tumbled by 5.2 to 8 percent. Selling A-shares market sparked concerns and Bloomberg gauge of the most traded Chinese companies has listed in the US sank down to 4.6 percent since August.
Mainland trading on the first day of the year closed earlier than expected as 7 percent slump of the Shanghai and Shenzhen listed blue chips has triggered circuit breaker mechanism with a benchmark Shanghai Composite closed at 3,296.26 or down by 6.9 percent as the Shenzhen Component Index stop at 11,626.04 or down by 8.2 percent. Analysts attributed to the plunge to the lower than expected manufacturing activity. The Caixin General China Manufacturing Purchasing Managers Index is one of the indicators in the manufacturing industry has edged down to 48.2 percent in December from 48.6 in November.
This year, trading of mainland stocks, index futures and options are suspended for 15 minutes, as the CSI 3000 that tracks the largest cap stocks in Shanghai and Shenzhen will fluctuate by 5 percent. Then trading is halted for the rest of the day when the index moves by 5 percent after 2:45 pm or hits 7 percent anytime of the day during trading session.