Welcome to the SCMP’s live coverage of China’s financial markets. The intense volatility in Chinese markets in 2016 due to the implementation of the circuit breaker has roiled world financial markets.

Investors are increasingly focused on the broader question of how this episode might affect the wider economy of the country. We’ll bring you the key levels, trading statements, price action and other developments as they happen.

11:28am Brendan Clift

The Shanghai Composite Index has traded up to 2,720.62 points, down 1.55 per cent on last closing. The CSI 300 index of Shanghai-Shenzhen large-caps stands at 2,921.40 points, down 1.43 per cent.

The Shenzhen Composite has also improved on its opening price, going to 1,728.32 points, down 1.28 per cent on last closing. The ChiNext Price Index of emerging tech stocks stands 0.31 per cent down on 2,090.49 points.

The Hang Seng Index has strengthened to 18,767.93 points, up 2.45 per cent, while the China Enterprises Index of major H-share companies is up 3.82 per cent to 7,791.89 points.

11:13am: Enoch Yiu

Onshore yuan traded by mainland traders rose sharply to 6.5154 per US dollar at 11 am, stronger by 0.84 per cent from the February 5 close at 6.57190.

Offshore yuan traded at 11am at 6.5181 to the US dollar, weaker by 0.13 per cent after it has hit a two month high at 6.4984 last Friday.

10:20am Brendan Clift

China’s January exports were down 6.6 per cent year-on-year, according to customs administration data just released, while imports were down 14.4 per cent.

10:05am Brendan Clift

HSBC Holdings has outperformed the Hang Seng in the first half-hour, lifting 3.43 per cent to HK$49.75, investors apparently welcoming the bank’s decision not to engage in a costly relocation and deciding the stock was oversold last week.

9:48am Enoch Yiu

The People’s Bank of China (PBOC) set the mid price fix for the onshore yuan at 6.5118 to the US dollar, stronger by 196 basis points or 0.3 per cent from February 5 before the market shut for a week due to the Lunar New Year holidays.

The fix would allow the onshore currency to catch up with the strengthening of the offshore yuan in the past week.

The offshore yuan market traded by international investors have strengthened by 0.51 per cent last week.

The central bank set the mid-price for the yuan against the Japanese yen weaker by 1,460 points to 5.7437, also reflecting the strengthening of the yen over the past week.

It set the mid price for the onshore yuan against the euro at 7.3397, weaker by 64 basis points, and it set the mid price for the onshore yuan against the pound at 9.4868, firmer by 612 basis points from the level on February 5.

Traders are allowed to trade two per cent above or below the midpoint set daily by the PBOC.

9:43am Brendan Clift

China markets take a hit on resumption as expected. The Shanghai Composite Index dropped 2.84 per cent to open on 2,684.96 points, while the Shenzhen Composite sank 3.25 per cent to 1,693.81 points.

But Hong Kong markets show signs of a rebound. The Hang Seng Index opened the week on 18,668.87 points, up 1.91 per cent, while the China Enterprises Index lifted 2.16 per cent to 7,667.35 points.

READ MORE: China stock markets open down after a week of global losses

8:47am Enoch Yiu

Here’s Hong Kong Monetary Authority chief executive Norman Chan’s response to decision by HSBC Holdings to stay put in London and not relocate it’s headquarters to Hong Kong.

“The HKMA appreciates that for a large international bank such as HSBC, relocation of domicile is a very major and complicated undertaking. We respect the decision of the Board of HSBC Holdings Plc to maintain the status quo.”

“I would like to stress that Hong Kong is the premier banking and financial hub in Asia, with all but one of the 30 Global Systemically Important Banks operating in Hong Kong. We note that The Hongkong and Shanghai Banking Corporation, which is headquartered in Hong Kong, has all along been the biggest source of profits for the HSBC Group, which will continue to use Hong Kong as the headquarters to grow and develop its business in the Asia Pacific region, including the major business investment plans in the Pearl River Delta”.

Hong Kong is located in the Pearl River delta of southern China.

READ MORE: HSBC announces it will stay in Britain, rejecting move to Hong Kong

8:20am Enoch Yiu

Hong Kong’s Hang Seng Index (orange) has lost almost 1,000 points in the two trading days last week to close at 18,319.58 on Friday, February 12.

The index has lost 16.4 per cent this year. The Hong Kong market closed from Monday to Wednesday last week for the Lunar New Year holiday.

Hang Seng China Enterprises Index (purple), also called the H-share index, closed at 7,505.37 on Friday February 12. It has lost 22.31 per cent so far this year.

Click to enlarge the chart.

8:20am Enoch Yiu

Shenzhen stock market will resume trading today after the Lunar New Year holidays.

Shenzhen Composite Index (orange) closed at 1,750.70 on February 5, off 1.15 per cent on the day and down 24.18 per cent so far this year.

ChiNEXT, the Nasdaq style start up market in Shenzhen, last traded at 2,096.99, down 1.39 per cent on February 5 and weaker by 22.74 per cent this year.

Similar to Shanghai, the Shenzhen market is seen opening to catch up with the losses suffered by most global markets.

Click to enlarge the chart

8:20am Enoch Yiu

The Shanghai stock market will resume trading today after the Lunar New Year holidays.

The Shanghai Composite Index (orange) closed on February 5 at 2,763.94, down 0.61 per cent on the day and off by 21.92 per cent so far this year.

The CSI300 (purple) which tracks large cap companies listed in Shanghai and Shenzhen, settled at 2,963.79 on February 5. It is down 20.56 per cent this year.

Analysts believe the Shanghai market would open lower as it plays catch up with the global rout which has hit world financial markets.

Click to enlarge the chart.

8:15am Enoch Yiu

Bank of East Asia will be the first local lender to report results today.

Chairman David Li and senior executives are expected to meet the media for a briefing at 1:30 pm about the company’s result and their view about hedge fund Elliott Management Corp, which now holds 7 per cent of the bank and has called for the board to explore selling the bank at an “appropriate premium”.

Bank of East Asia (orange) closed at HK$22.55 on Friday, down 0.44 per cent of the day and weaker by 21.84 per cent this year, compared with a loss of 16.40 per cent by the Hang Seng Index (purple).

Click to enlarge the chart.

8:15am Enoch Yiu

Offshore yuan (CNH) has had a bumpy ride so far this year . The currency rose strongly last week against the US dollar. It is now up 0.48 per cent versus the dollar as of the close of trade last week after depreciating 2 per cent in the first week of 2016. It traded at 6.5239 to the dollar at 7.30 pm last Friday.

The onshore yuan (CNY) market had been closed for the Lunar New Year holiday and reopens for trading today. It last closed at 6.5710 to the dollar on February 5. The currency has depreciated 1.2 per cent so far this year.

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