China...Have you seen this?

[kadee79]

Chinese stock exchanges closed early for the second time this week after the CSI 300 Index plunged more than 7 percent.

Trading of shares and index futures was halted by automatic circuit breakers from about 9:59 a.m. local time. Stocks fell after China’s central bank weakened the currency’s daily reference rate by the most since August.

“The yuan’s depreciation has exceeded investors’ expectations,” said Wang Zheng, Shanghai-based chief investment officer at Jingxi Investment Management Co. “Investors are getting spooked by the declines, which will spur capital outflows.”

Under the mechanism which 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 7.2 percent before trading was suspended.

Chinese stocks in Hong Kong, which doesn’t have circuit breakers, slumped 4.4 percent. The offshore yuan fell to a five- year low before erasing losses.

www.msn.com/en-us/money/markets/china-halts-stock-trading-after-7percent-rout-triggers-circuit-breaker/ar-AAgsdbu?li=BBnb7Kz&ocid=U305DHP

[Value Buy]

We are in for it this morning. Hopefully it will bounce back this afternoon.
Portfolio took a rather big hit yesterday. Today will be worse.
I will have to check out DI'S thread on options today. I imagine some of his options are going to hit today, or at least he should be able to close some profitable positions.

[The Virginian]

Doesn't bother me !  Just means lower equity prices and higher yields = buying opportunities. Now is the time to buy when the rest of the world is running scared -

[Virgil Showlion]

Yeah, it's not pretty. Especially at market close in China yesterday (today, for us). I guess the "circuit breakers" the Chinese have put in to prevent market plunges are only aggravating the situation. The market drops 7%, the breaker kicks in and suspends all selling, stock holders find themselves in an even bigger liquidity crunch unable to sell, the market opens again, rinse, lather, repeat...

[The Virginian]

I have never understood why people find the need to buy Chinese or other foreign stocks when we have more quality here than one could ever own ! US stock PEs are high but since the government is keeping interest rates artificially low where are people going to make money ?