China stock market rout continues despite fewer stocks trading

The Shanghai Composite Index (SHCOMP) fell more than 4% at opening this morning as recent supportive measures failed to halt the recent sell down. Only 10 stocks posted gains, while 725 declined. 

At least 1301 companies across the Shanghai and Shenzhen stock exchanges have now suspended trading, locking up USD2.6trn worth of shares that makes up 40% of China's market capitalization. The continual declines underscore the authorities' difficulties in reversing the downward momentum on stock prices against a backdrop of deleveraging. 

This raises concerns that the falling stock market could exacerbate the already slowing economy via financial contagion or the suppression on domestic consumption. USD-CNY stayed range bound, says Commerbank.