China"s securities watchdog is drafting a plan to implement the circuit-breaker mechanism in the country"s stock market. Anbound"s chief researcher, Chen Gong, points out that the circuit-breaker mechanism has a larger impact on the trading. In relation to the government, this could help to ease the pressure on the bailout funds, or even exit from the stock market. The U.S’s circuit-breaking mechanism has only been activated once in several decades, China, however, as its stock market happens to be very volatile at the moment, Chen Gong is of the view that the circuit-breaking system might be activated frequently during its initial period before moving towards stabilization.
