China: Stocks rise 2% at market open after Beijing turns off circuit breakers

[SHANGHAI] China's major stock indexes rose more than 2 per cent in early trade on Friday after Beijing deactivated a circuit breaker mechanism blamed for aggravating market crashes this week.

The CSI300 index rose 2.4 per cent to 3,371.87 points byt 0127 GMT, while the Shanghai Composite Index gained 2.2 per cent to 3,194.63 points.

Chinese markets have been rattled by a confluence of negative events, including weak economic data, concerns about pending share sales by major stakeholders and the central bank's recent sharp depreciation of the yuan currency.

The circuit breaker, designed to put a floor under volatile shifts in sentiment and protect investors, was blamed by some market watchers for inadvertently aggravating anxiety and accelerating the selloff.

The CSI300 has slumped around 12 per cent so far in 2016, giving up all the gains earned in 2015 and roiling global financial markets.

The Hang Seng index in Hong Kong was up 0.8 per cent at 20,491.88 points.

REUTERS