Chinese shares slump after further yuan devaluation

Chinese stocks have been halted for a second day this week after a further yuan devaluation spooked investors.

Authorities allowed the yuan to weaken by around half a per cent against the US dollar, which triggered the sell-off.

Chinese share trade was suspended at about 12:43pm (AEDT) after only 13 minutes of activity when the key CSI 300 index of Shanghai and Shenzen stocks fell 5 per cent, triggering an automatic 15-minute trading halt.

When the market reopened it only took two minutes for the index to fall more than 7 per cent, triggering an automatic suspension of trade for the rest of today.

The sudden slump had an immediate effect on Australian markets, with the ASX 200 index off 1.4 per cent and the All Ordinaries index down 71 points to 5,107 by 1:02pm.

The Australian dollar has also been walloped, falling to 70.25 US cents.

Source: Chinese shares slump after further yuan devaluation – ABC News (Australian Broadcasting Corporation)

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