China stocks slump 7%, triggering circuit breaker

Downtrend: Chinese investors look at a screen showing stock movements at a stock brokerage house in Beijing. Chinese shares began Monday with losses after data showed manufacturing contracted for a fifth straight month and investors anticipated the end of a ban on share sales by major stakeholders at the end of this week.

SHANGHAI: China stocks fell 7 percent on Thursday after less than half an hour of trading, triggering a newly-introduced circuit breaker mechanism.

Shanghai and Shenzhen markets will remain closed for the rest of the day.

The CSI300 index fell 7.2 percent, to 3,284.74 points, while the Shanghai Composite Index lost 7.3 percent, to 3,115.89 points.

Selling pressure increased in line with a slide in the yuan which fell to its lowest level since February 2011. - Reuters