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[CCTV News] Traders hopeful for a more stable stock market

Last updated :2016-01-09

Source: english.cntv.cn/2016/01/08/VIDEoS3cc4I6gegIAtYXbcOz160108.shtml

The circuit breaker mechanism has been suspended but concerns remain on how the stock market will develop. Both investors and analysts say what is needed most is a stable market.

Yesterday the Shanghai stock market in China was frozen for the second time in four days, after just 30 minutes of trading, when the size of losses triggered circuit-breakers designed to prevent panic selling.

Later on the same night, the Chinese regulator announced that it had suspended the circuit breakers altogether. The suspension of circuit breaker was meant to remove some of the panic this week. So far experts, stock analysts and investors all speak highly of the timely response by the authority. But they still have concerns.

"Yesterday when the circuit breaker was triggered, I couldn't even find enough time to fill in my personal information to log onto the trading system. It all happened so fast. I think the policy makers should think about China’s economic conditions. The suspension clearly shows that circuit breakers do not work for China. As stockholders, we hope China's market will be more stable and healthy in the future," said Ding Weifang, stockholder.
"To me the correction of the policy is just in time. Because a stock market is all about circulation of capital and information. Therefore, the suspension in itself will not help stabilize China’s stock market. The regulatory body needs to do more to improve market liquidity and information transparency," said Wang Yanming, international finance professor of Sun Yat-sen University.