www射-国产免费一级-欧美福利-亚洲成人福利-成人一区在线观看-亚州成人

US EUROPE AFRICA ASIA 中文
Business / Markets

Stock market circuit breaker mechanism comes under flak

By Li Xiang (China Daily) Updated: 2016-01-08 07:44

Stock market circuit breaker mechanism comes under flak

A man takes a photo of the trading screen at a securities brokerage in Shanghai on Thursday. [Photo/China Daily]

Analysts say current regulations are too conservative, and call for increased flexibility with higher threshold

The stock market fallout on Thursday has sparked criticism about the newly introduced circuit breaker mechanism with some investors and analysts calling for further improvements.

Fund managers are urging the capital market regulator to revise the circuit breaker rules which they feel are too conservative and could aggravate the liquidity crisis in the market, according to Chinese media report.

Less than 30 minutes after the market opened on Thursday, the CSI 300 Index, which tracked some of the largest stocks in the Shanghai and Shenzhen bourses, plunged by 7 percent, after resuming from a 15-minute trading halt in the morning trading session.

The 7 percent threshold of the circuit breaker resulted in the shutdown of entire market trading for the remainder of the day.

Analysts expect the regulator to revise the circuit breaker rules in the coming months by raising the threshold for the market suspension or shortening the time period for a halt.

"Ideally, what happened last summer suggests that less, rather than more, trading restrictions are needed to better protect market liquidity and avoid stampedes in a market dominated by retail investor sentiment," HSBC's head of China equity strategy Steven Sun said in a research note.

According to the current rules, trading of stocks, index futures and options will be suspended for 15 minutes when the CSI 300 Index fluctuates by 5 percent.

Trading will be halted for the remainder of the day when the index moves by 5 percent after 2:45 pm or 7 percent at any time during the trading session.

The circuit breaker threshold was considered too narrow by many analysts given that a 10 percent daily trading limit is imposed on individual stocks in the A-share market. The US stock market has three thresholds-7, 13 and 20 percent.

Sun Jianbo, an analyst at China Galaxy Securities Co, said that the circuit breaker mechanism would help magnify investors' anxiety and create the "herd effect" as investors rushed to liquidate their positions.

"There is a high possibility of 42 percent for the market to trigger the 7 percent threshold after it breaches the 5 percent limit," he said.

Some analysts said that the current mechanism offered little help to contain market volatilities given that the A-share market's extremely high turnover velocity of approximately 500 percent in 2015.

Hot Topics

Editor's Picks
...
主站蜘蛛池模板: 欧美日韩一区二区三区在线 | 日本免费在线一区 | 久久毛片免费看一区二区三区 | 加勒比毛片 | 直接在线观看的三级网址 | 国产特黄一级毛片特黄 | 日韩午夜| 欧美刺激午夜性久久久久久久 | 在线不卡一区二区三区日韩 | 欧美激情伦妇在线观看 | 风流慈禧一级毛片在线播放 | 亚洲午夜精品一级在线播放放 | 九九久久精品这里久久网 | 国产一区二区三区在线观看视频 | 欧美牛逼aa| 亚洲国产精品久久久久久 | 国内精品美女写真视频 | 国产精品视频网址 | 日韩成人免费一级毛片 | 99热久久国产综合精品久久国产 | 九九国产精品九九 | 91精品国产免费久久久久久 | 国产精品久久久99 | 毛片中文字幕 | 在线不卡一区二区 | 日韩黄色一级片 | 亚洲视频在线观看免费 | 视频偷拍一级视频在线观看 | 伊人久久综合热青草 | 91玖玖| 有码一区| 真实的国产乱xxxx | 中文无线乱码二三四区 | 欧美在线不卡 | 国产色啪午夜免费视频 | 99www综合久久爱com | 亚洲伊人色综合网站小说 | 免费观看一级成人毛片软件 | 99九九视频 | 成人亚洲在线 | 国产免费一级在线观看 |