[BEIJING] China's Shanghai and Shenzhen Stock Exchanges and the China Financial Futures Exchange plan to introduce a 'circuit breaker' on one of the country's benchmark stock indexes to "stabilise the market", the Shanghai exchange said in a statement on its website late on Monday.
The exchange is proposing that a 5 per cent rise or fall in the CSI300 index from the previous day's close would trigger a 30-minute suspension of all the country's equity indexes if the move occurs before 2:30 pm. After that time, a 5 per cent move would prompt a suspension until the market close.
Moves of 7 per cent from the previous close would trigger a trade suspension for the rest of the day.
The exchanges are seeking comment from market participants on the proposals before Sept 21.
The CSI300 index comprises the largest listed companies in Shanghai and Shenzhen.