China’s CSI 300 Healthcare Index Suffers Rare Glitch Causing Record Crash

The Chinese CSI 300 Health Care Index suffered a significant drop when trading opened on Monday, but none of the individual stocks decreased by more than 2 percent; however, the sudden decline was due to an internal glitch from the resulting change in the index-calculation system over the weekend.

The Health Care Index dropped by 17% when trading opened on Monday, but later rebounded to normalized pricing by the afternoon, with a thorough correction to take place after closing. Nevertheless, such a rare index glitch is rarely in occurrence, and analysts are unsure of the oncoming effects it may have on ETF trades that experienced momentary misleading prices. The CSI data is used by some to conduct quantitative trading via automatic programs, and such a discrepancy on prices can create problems and losses.

The CSI Index is predominantly listed in Taiwan, Hong Kong, South Korea, and mainland China, and is comprised of of exchange-traded funds based on various healthcare firms. Thus far, the CSI 300 has increased by 10% this year, but has lost 6.2% as a result of the glitch.

Information for this briefing was found via Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

Giant Mining Encounters Native Copper As Hole MHB-34 Hits 563 Metres Depth

Verses Hits Commercialization Stage With Genius AI Platform

Related News

Is the Dollar Losing its Dominance? Russia Resorts to Yuan Bond Sales to Raise Capital

The West’s choking sanctions against Russia have prompted the former Soviet country to explore alternative...

Tuesday, August 9, 2022, 09:49:00 AM

Tesla’s Chinese Market Share in Jeopardy as Competitors Ramp up EV Production

Competition in China’s EV market is being shaken up again, as Tesla makes plans to...

Sunday, January 17, 2021, 11:13:00 AM

China’s Gold Imports Surge 17% in July

China’s net gold imports through Hong Kong increased by 17% in July compared to June,...

Wednesday, August 28, 2024, 07:54:21 AM

Tesla Slashes EV Prices in China for Seventh Time This Year

Although the demand for zero-emissions and electric vehicles is expanding steadily despite the economic hurdles...

Wednesday, October 14, 2020, 10:50:01 AM

Crude Oil Prices on the Decline After China Releases Fuel Reserves to Boost Domestic Supply

Crude oil prices briefly receded from their multi-year highs on Monday, after China’s government released...

Tuesday, November 2, 2021, 04:51:00 PM