China to adopt stock market circuit breaker

China will launch the mechanism at the beginning of 2016, the latest move to stamp out wild swings in the country’s volatile stock market.

China will launch a stock market circuit breaker mechanism at the beginning of next year, the latest move to stamp out wild swings in the country’s volatile stock market.

A move of 5% in either director on the CSI 300 Index, China’s blue-chip tracker, would trigger a 15-minute halt for stocks, convertible bonds, stock options and futures contracts, according to a statement jointly issued by the Shanghai and Shenzhen Stock Exchanges and the China Financial Futures Exchange late on Friday. A swing of 7% would freeze trading for the rest of the day. 

The CSI 300 Index tracks 300 stocks with the largest market capitalizations listed...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222