China to Close Stock Market to Honor World War II Anniversary

The Shanghai stock market will be closed Thursday and Friday as China commemorates the 70th anniversary of the end of World War II.

That is probably welcome news for investors around the world in the wake of a global equities selloff sparked by weak Chinese economic data.

But heedless of mounting worries about its economy, or perhaps in an effort to divert attention, the Chinese government is going all out to mark the occasion in style. In addition to declaring Thursday a national holiday, there will be a military parade through Tiananmen Square with foreign dignitaries in attendance.

Once the parade passes by, there is likely to be more pain in store for China. Goldman Sachs on Monday said the Chinese economy is estimated to have shrank in July and is likely to remain weak in August and September, in part due to Beijing’s move to restrict construction and production during World War II commemoration ceremonies.

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Craig Erlam
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the BBC and The Telegraph, and he also appears regularly as a guest commentator on Bloomberg TV, CNBC, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.