The Chinese stock markets tumbled 7 percent in opening session of 2016
The year 2016 has started off with a sell-off a Chinese stocks witnessed severe selling in early hours of trade.
Chinese stock markets tumbled 7 percent in their opening session of 2016 on Monday as weak factory activity surveys and falls in the yuan added to concerns about the struggling economy, forcing exchanges to suspend trade for the first time, reported Reuters.
Early losses quickly snowballed in the afternoon, with trading suspended around 0530 GMT (12.30 a.m. ET), about 90 minutes before the regular close, said the Reuters article.
Selling intensified after a brief 15-minute trading halt early in the afternoon when main indexes had shed 5 percent, and activity in Shanghai and Shenzhen was halted for the day soon after.
It was the first day that the China markets so-called "circuit breakers", intended to curb volatility, had been in effect.
A private survey early in the day showed China's factory activity contracted for the 10th straight month in December, and at a sharper pace than in November.
Indian markets also followed the global sell-off as the Sensex reeled under selling pressure falling over 500 points. The Sensex slumped 534 points, or 2.05 percent at closing.
Last year, the Indian markets came under selling pressure when the Chinese market capitulated in October. Analysts expect the market the volatility to continue as global slowdown in manufacturing is a cause of concern