Chinese stock exchanges in Shenzhen and Shanghai suspend their circuit-breakers
We learned this morning that Chinese market circuit-breakers are like buses: you wait ages for one and then two come along at once.
But clearly two of the country's largest stock exchanges have had enough: today the Shanghai and Shenzhen stock exchanges issued statements saying they're scrapping the circuit-breaker. They're suspending their suspensions
The circuit-breaker was introduced to prevent volatility after August's so-called Black Monday. The idea is that if stocks fell below seven per cent, trading is automatically suspended.
The news pushed the FTSE 100 up slightly – although it remained two per cent down, below 6,000 points. The Dow, which opened 240 points lower, also edged up, but was still trading 1.1 per cent lower in mid-morning trading in New York.
The decision came after trading in China was suspended for a second time this week. This morning stocks plummeted after