Chinese shares closed mixed today, ending a week of volatile trading, following mounting fears over the pace of the country's economic slowdown.
After a day of wild swings, China's Shanghai composite index closed up 1.97 per cent at 3,186.41 points. Meanwhile, the Shenzhen composite index ended the day 1.05 per cent higher at 1,978.721 points.
The CSI 300 index, tracking 300 stocks on the Shanghai and Shenzen, finished two per cent higher at 3,361.56 points. Nevertheless, the blue-chip index ended the week almost 10 per cent lower.
"The market is back to normal," Tian Weidong, analyst at Kaiyuan Securities, said.
"Investors can buy and sell as they wish. Under the circuit breaker mechanism, the market was suffocated."
Broker Spreadco said: "Despite a highly volatile overnight session, it seems removing the trading limits have had the desired effect. There are hopes that the worst may be over and cautious buyers are creeping back in."
Chinese authorities yesterday scrapped the controversial circuit-breaker mechanism which halted trading on the country's stock markets twice this week.
The rule, introduced in response to volatile trading over the summer, kicks in when the stock market loses more than five per cent. However, a number of critics argued it was increasing market panic.
It was triggered yesterday, following the People's Bank of China's shock decision to set the official midpoint rate of the renminbi at 6.5646 per dollar, its lowest level since March 2011, worsening fears over a slowdown in economic growth.
The mechanism had been used for the first time ever on Monday, the first time it came into effect, to stem a sell-off sparked by mounting fears over the Chinese economy.