China's Stock Market Is Hardly Free With Circuit Breakers Gone
Why China Scrapping Circuit Breakers Was a Good Idea
China’s removal of market-wide circuit breakers after just four days still leaves investors facing plenty of restrictions in how they trade.
A 10 percent daily limit on single stock moves and a rule preventing investors from buying and selling the same shares in a day remain in force. Volume in what was once the world’s most active index futures market is minimal after authorities curtailed trading amid a summer rout, making it more difficult to implement hedging strategies. Officials unveiled curbs Thursday on share sales by major stockholders just a day before an existing ban was due to expire. And the activity of foreign investors is limited by quotas, given either to asset managers or to users of the Hong Kong-Shanghai exchange link.