A new series of measures including circuit breaker mechanism and new IPO system have taken place in the stock market since 4th January.

On the very first day, the market has tested the circuit breaker mechanism and plunged during the first trading session of the year.

ANBOUND's scholars are of the view that the circuit breaker mechanism has both advantages and disadvantages; the plunge in A-share market on 4th January can be attributed largely to the imperfect rules governisysteng the circuit breaker mechanism.

In comparison with the mature approach adopted by the foreign countries, the rules we have formulated are not only simplistic but also have many shortcomings.

In order to avoid the circuit breaker mechanism from being triggered frequently, the regulatory authorities should learn from their international counterparts and make necessary amendments and modifications to improve the circuit breaker mechanism.