China CSI300 index dives 7% before 'circuit breaker' stops trade

New market mechanism spooks foreign investors, raising fresh doubts about regulators' efficiency

Published Mon, Jan 4, 2016 · 09:50 PM

Shanghai

CHINA'S major stock exchanges tanked on the first trading day of the year, triggering a "circuit-breaker" that suspended equities trade nationwide for the first time and put months of regulatory work to restore market stability at risk.

The sell-off saw the CSI300 index of the largest listed companies in Shanghai and Shenzhen lose 7.0 per cent before trading was suspended, its worst single-day performance since late August 2015, the depth of a summer stock market rout.