Thursday, January 7, 2016
BREAKING: China Suspends Market Circuit Breakers
China Securities Regulatory Commission has just announced the suspension of its circuit breaker system, just four days after it was introduced. The system has already led to two trading halts in Chinese stock markets this week.
Chinese equity indexes were halted for the day after only 30 minutes of trading todayy because of a 7.0% decline that triggered the circuit breakers once again.
I discussed the problem of circuit breakers exacerbating the problem in China in yesterday's EPJ Daily Alert.
When averages move close to circuit breakers territory Chinese traders have been selling their positions in fear that trading will be suspended and they won't be able to get out of their stocks
at 10:08:00 AM