Inventor of Market Circuit Breakers Says China Got It Wrong
- Ex-Treasury Secretary Brady says halts not suited to market
- A 7 percent stock slump isn't unusual in China, data show
El-Erian: Buckle Up, China Could Be a Wild Ride
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The man responsible for stock circuit breakers says Chinese officials must revise their safety net to avoid creating panic, joining critics who argue the nation’s trading halts are triggered too easily for such a volatile market.
“They’re just on the wrong track,” said Nicholas Brady, 85, the former U.S. Treasury secretary who ran a committee that recommended the curbs on equity trading after the 1987 crash. “They need a set of circuit breakers that appropriately reflects their market.”