China suspends mechanism aimed at ending stock market turmoil

Discussion in 'Market News' started by Lily, Jan 7, 2016.

  1. Lily

    Lily Forum Member

    Aug 29, 2015
    Likes Received:
    Decision to abandon circuit breakers came after it was tripped for a second time in a week when market fell 7% within minutes of opening

    Chinese authorities sought to bring an end to new year stock market turmoil with a dramatic U-turn on a new mechanism that Beijing had hoped would prevent sharp selloffs.

    On Thursday, in a tacit admission that the new circuit breakers introduced only this week were having the opposite effect to that intended, China’s main stock exchanges said they were suspending the mechanism. The move came after the breaker was tripped for the second time in a week as the market fell 7% within half an hour of opening.

    Related: China share trading halted after market plunges 7% in opening minutes

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