STOCK TRADING SUSPENDED IN CHINA!!!!

TRADING SUSPENDED IN CHINA

Chinese Stock Market plunged considerably on Monday due to heavy sell-off in the Chinese Stocks forcing China to halt trading for rest of the day.The Shanghai Composite plunged 6.85 percent to 3296.66 and the Shenzhen Composite was the worst performer and lowered by 8.1 percent. The CSI 300 was down 6.98 percent; when that index rises or falls 7 percent, as a result trading is suspended in China's markets for the rest of the session.
Due to this stocks in India, Japan, South Korea and Australia also plunged.
Gavin Parry, managing director at Parry International Trading, said several factors could explain the sell-off in the Chinese markets. First, he noted the lower-than-expected manufacturing report that was out over the weekend, followed by the Caixin survey released earlier in the morning.
Parry said everyone is "still focusing on the industrial side of things."
Trading had been halted earlier in the day for 15 minutes after the stock market fell by 5%.
But shares continued to fall, forcing regulators to end trading for the day.
According to China's new Circuit-Breaker Mechanism, moves of more than 7% from previous session will lead to trading suspension for the day
China's stock market falls on Monday point to "volatile trading for the rest of the year" according to the BBC's Karishma Vaswani.
"Retail investors in the Chinese stock market are often driven by sentiment and tend to follow the crowd. When they hear of some bad news from brokers or their friends, and other people start selling - they start selling too."
According to  market experts there exists a number of reasons for the selling, including China’s disappointing manufacturing data, reported earlier Monday, and the coming removal of a ban on major shareholders from selling stakes, put in place during the summer stock crash.