China halted stock trading for the rest of the day after the CSI 300 Index plunged more than 7 percent on Monday.
Trading of shares and index futures was halted from about 1:34 p.m. local time, according to data compiled by Bloomberg. Stocks fell as manufacturing contracted for a fifth straight month and investors anticipated the end of a ban on share sales by major stakeholders.
Under the mechanism which only became effective Monday, a move of 5 percent in the CSI 300 triggers a 15-minute halt for stocks, options and index futures, while a move of 7 percent close the market for the rest of the day. The CSI 300 of companies listed in Shanghai and Shenzhen fell as much as 7.02 percent before trading was suspended.
China Halts Stock Trading After CSI 300 Index Plunged 7%