Wednesday, September 09, 2015
Do Not Exaggerate the Role of Circuit Breaker Mechanism in Stabilizing Stock Market
ANBOUND
Recently, the circuit breaker mechanism is a hot topic.
Anbound's scholars, however, are of the view that the circuit breaker mechanism is merely a technical arrangement; under the current market situation, over emphasis on the circuit breaker mechanism will cause a more pessimistic view on the capital market outlook – the circuit breaker is to prepare for a bigger plunge.
There should be more discussion on the economic growth and the macro economic outlook to stabilize the market’s confidence on Chinese economy. Once the confidence on Chinese economy has been restored, the stock market will follow suit and return to normal.