Black Monday! #ChinaStocks join global panic selloff, dive 8.5%, worst since Asian financial crisis at midday pic.twitter.com/nLHoFf34bV

— China Xinhua News (@XHNews) August 24, 2015

FACTS: By midday break, nearly 2000 stocks down 10% daily limit in Chinese market -- only 13 stocks up; Shanghai benchmark index down 8.45%

— George Chen (@george_chen) August 24, 2015

 

But... but... pension funds are "allowed" to buy stocks.

Judging by the first few minutes of trading in the first thing to open this evening on the mainland, the CSI 300 Index Futures which immediately tumbled by 4% to 3340, China's attempt to deflect attention from the fact that it did not do a 50-100 bps RRR cut is not doing too well.

Some other indicative levels which are in line with the CSI:

• Shanghai Composite to open -3.8%, some 130 points below the 3,500 "hard line" support level below which it is a nothing but air back to 2000
• Shenzhen down 4.3%
• ChiNext down 5.1%

That said, we expect the National Team to not give up without a big fight, and forcefully step in any minute and do everything in its power to prevent the resultant plunge in the Shanghai Composite which is set to open shortly, or else SHCOMP 2000 beckons, and with it lots and lots of social unrest.

* * *

Update: Shanghai Composite now down -5.7%

 

And the 3,500 support is now gone.

 

Update 2: Shanghai Composite crashing, now down 7%

 

Update 3 and final: SHANGHAI COMPOSITE INDEX ERASES YEAR'S GAINS