China circuit breaker plan draws support

Shanghai

CHINA'S plan to introduce a stockmarket circuit breaker would help calm volatility after price swings in the benchmark index surged to an 18-year high, according to analysts and investors in a Bloomberg survey.

Twelve of the 15 respondents were in favour of the proposal while the remainder were against. Under the current plan, a move of 5 per cent in the CSI 300 Index would trigger a 30-minute halt for stocks, options and index futures, according to a joint statement on Monday by the nation's two bourses and the futures exchange.