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Policy and government

Stock index circuit breaker in the pipeline

A circuit breaker mechanism is expected to be introduced in China's stock markets soon after regulators consider public opinions gathered over the past two weeks. From Sept 7 to Sept 21, the Shanghai and Shenzhen stock bourses and the exchange for trading financial futures had been gathering public opinions on introduction of an index circuit breaker system, which would suspend trading temporarily in response to substantial rises or drops. The system would follow changes in the Hushen 300 Index, which reflects the performance of China's Shanghai and Shenzhen stock exchanges. When the index rises or falls by 5 percent, the circuit breaker would be triggered with a 30-minute suspension in stock trading.