China to launch stock index circuit breakers on January 1

China will introduce circuit breakers to the Shanghai Stock Exchange, Shenzhen Stock Exchange and China Financial Futures Exchange on January 1, 2016, Shanghai Stock Exchange said in statement on Friday. A 5 percent rise or fall in the CSI 300 benchmark index will result in a 15 minute trading suspension for all the country's equity indexes, while a 7 percent move up or down will trigger suspension of trade for the rest of the day.
If a 5 percent move occurs after 2:45 pm, it will also halt trade for the rest of the day. The exchange said the plan has been approved by China's Stock Regulatory Commission (CSRC).