Shanghai Exchange Suffers Trading Malfunction Amid Surge in Buying

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A stock investor checks the Shanghai Composite Index on his phone on Friday.

Foreign investors, including those eager to buy “everything” in China like billionaire David Tepper, faced a setback Friday as the Shanghai Stock Exchange experienced an unexplained transaction delay.

This disruption coincided with a surge in buying activity following China’s announcement of an array of economic stimulus measures this week.

The benchmark Shanghai Composite Index (SCI) yoyoed through the first 30 minutes of trading before leveling off at around 3,030 for roughly an hour. It returned to its normal fluctuating trend around 11:15 a.m.

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Foreign investors faced a setback due to an unexplained transaction delay on the Shanghai Stock Exchange.
The delay coincided with a surge in trading following China's announcement of economic stimulus measures.
The Shanghai Composite Index experienced fluctuations, and combined transaction volume reached nearly 700 billion yuan in the first hour of trading, more than 300 billion yuan up from the previous day.

AI generated, for reference only

Who’s Who

Appaloosa Management LP: Appaloosa Management LP is a hedge fund firm founded by billionaire David Tepper. Tepper expressed a strong interest in investing heavily in China, indicating he would buy "everything" in the country. This sentiment was conveyed during a Thursday interview with CNBC.

AI generated, for reference only

What Happened When

2024-09-23 to 2024-09-27：: China announced an array of economic stimulus measures.

2024-09-24：: People’s Bank of China (PBOC) and two other financial regulators announced a slew of stimulus measures.

2024-09-26：: The combined transaction volume on the Shanghai and Shenzhen stock exchanges was up more than 300 billion yuan in the first hour of trading compared with the same period on Thursday.

2024-09-26：: The Politburo laid out a long list of goals to address the country’s economic challenges.

2024-09-26：: China Securities Regulatory Commission vowed to attract more long-term investment to the capital markets.

2024-09-26：: David Tepper said in an interview with CNBC that he would buy “everything” in China.

2024-09-27：: The Shanghai Stock Exchange experienced an unexplained transaction delay.

2024-09-27：: Shanghai Composite Index (SCI) yoyoed through the first 30 minutes of trading before leveling off at around 3,030 for roughly an hour and returned to normal fluctuating trend around 11:15 a.m.

2024-09-27：: People’s Bank of China (PBOC) pressed ahead with a 50-basis-point cut in banks’ reserve requirement ratio before stock markets opened, pumping approximately 1 trillion yuan in long-term liquidity into the financial market.