A sudden resurgence of sales in the final leg of the journey has deleted the 3,000 points from the Shanghai Composite Index.
The Shanghai Stock Exchange reached the final stage of the day with a virtually flat trend, similar to the registered yesterday. Investors counted with a less unfavorable data exports than expected. China’s exports in December fell by 1.4%, well below the 6.8% decline in November.
Hope for a new session of truce vanished in the last half hour of the day. A new outbreak of the usual bearish wave since the beginning of the year ended deflating the Shanghai Composite index up 2.4%. With this setback, the index loses the barrier of 3,000 points and drops to 2,950 points.
This level represents a setback top 40% from the highs achieved last year, just six months ago. In mid-June, just before the outbreak of the alerts in China and the subsequent rout in equities, the Shanghai Composite Index reached 5,178 points.
Only so far in 2016, just a week and a half long, losses on the Shanghai Stock Exchange outweigh the double digits, and has already lost 16%.
The yuan threatens to stabilize
The most reassuring news came from the yuan. Analysts point out that new Chinese central bank interventions have favored a new round of stabilization at the junction of its currency.
The first days of the year jumped alerts in the markets before the succession of falls recorded the yuan, with the apparent approval of the Bank of China. Investors feared that China accepted the further depreciation of the currency in order to increase the competitiveness of their exports and thus offset the slowdown in growth.
The Tokyo Stock Exchange recovers from yesterdays loses. The greatest strength of the yuan helped the comeback of the Tokyo Stock Exchange. Yesterday the Nikkei closed with a correction of 2.7%. Falls also rose amid fears of higher taxes in Japan. This day has been used to recover almost all of what was lost yesterday. At the close of trading increases reached 2.88%, to end at 17,715 points.