China suspends circuit-breaker amid market madness

China suspends its newly minted circuit-breaker mechanism designed to help stabilise the equity market after it instead sparked stock sell-offs.
January 07, 2016

China’s securities regulator has suspended its newly implemented circuit-breaker mechanism designed to tame market volatility after it exacerbated stock sell-offs and shut down equity trading early twice in one week.

The China Securities Regulatory Commission announced late on Thursday night that the circuit-breaker system would be halted from Friday, only four days after introduction, without saying how long the suspension will last.

“It didn’t work out as expected Currently the negative effect is bigger than the positive one. Therefore, we have decided to suspend it in order to maintain market stability,” the CSRC said in a statement posted on its Weibo account.

The regulator...

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