China's Seven-Minute Selling Frenzy That Shook Global Markets
- New measures to curb volatility risk doing the opposite
- Stock investors rushed to sell after first trading halt
China Stock Selloff Tests New Market Circuit Breakers
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The sell orders piled up fast on Monday at Shenwan Hongyuan Group, China’s fifth-biggest brokerage by market value.
China’s CSI 300 Index had just tumbled 5 percent, triggering a 15-minute trading halt, and stock investors were scrambling to exit before getting locked in by a full-day suspension set to take effect at 7 percent. When the first halt was lifted, the market reaction was swift: it took just seven minutes for losses to reach the limit as volumes surged to their highs of the day.