China's stock markets suspended as shares tumble 7 percent

BEIJING, 4th January 2016 (WAM) -- Trading on China's stock markets was ended at 1:33 p.m. Monday after shares tumbled 7 percent, triggering the new "circuit breaker" mechanism on the first trading day of 2016.

The early end to trading on Shanghai and Shenzhen bourses, the first in the history of China's stock markets, coincided with the launch of the automatic circuit breaker, designed to contain wild swings in the markets.

The mechanism follows the Hushen 300 Index, which reflects the performance of both Shanghai and Shenzhen traded stocks, state news agency, Xinhua, said.

When the Hushen 300 rises or falls by 5 percent, the circuit breaker imposes a 15-minute suspension of trading. If fluctuations hit the 7-percent mark, trading is terminated for the day.


WAM/tfaham