China halts trading after 7% shares plunge, triggering ‘circuit breaker’

Monday, 4 January 2016 12:04

An investor observes stock market at a stock exchange hall on January 4, 2016 in Fuyang, Anhui Province of China. Chinese shares slumped to a halt on the first trading day of 2016. The Shanghai Composite Index down 242.52 points, or 6.85 percent, to halt

Chinese stock markets dropped 7% in the first opening session of 2016 triggering the ‘circuit breaker’, a new system which halts trading and is intended to curb volatility. Under China's new mechanism, moves of 7% from the previous session's close trigger a trading suspension for the day. In Monday’s trading session, investors dumped stocks ahead of the imminent expiration of a Chinese share sales ban on listed companies' major shareholders, which had been imposed during the market crash last summer. The ‘circuit breaker’ measure was introduced in early December as a result of the market turbulence.

More from Business

Oil prices surge to highest since 2022 at over $119 a barrel

Oil prices surged over $119 a barrel, hitting levels not seen since mid-2022, on Monday as some major producers cut supplies and fears of prolonged shipping disruptions gripped the market due to the expanding US-Israeli war with Iran.
HSBC CEO says confidence in GCC remains despite regional developments

HSBC on Monday expressed confidence in the Gulf Cooperation Council (GCC) members' economic prospects as the region and the wider Middle East brace for the economic shock from the U.S.-Israeli conflict with Iran.
Silal, National Agricultural Centre partner to boost UAE food security

Silal, an Abu Dhabi agri-food and technology company, has announced the expansion of its operations in Ras Al Khaimah in collaboration with the National Agricultural Centre.
No decision yet on G7 releasing oil stocks, France's Lescure says

G7 countries have not made a decision yet on the potential release of emergency oil stocks in the wake of the U.S.-Israeli conflict with Iran, France's Finance Minister Roland Lescure said on Monday.