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Shenzhen Stock Exchange

Controversies

Controversies tied to this brand in public sources. A listing is not a finding of fault.

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  1. 2016

    Index circuit breaker suspended after only four trading days

    The Shanghai Stock Exchange, Shenzhen Stock Exchange and China Financial Futures Exchange formally implemented an index circuit-breaker mechanism on January 1, 2016. Within the two trading days of January 4 and January 7, the mechanism was triggered four times; on January 7, trading was halted for the entire day less than half an hour after the open, and A-share market value evaporated by about 6.8 trillion yuan over four days. The CSRC acknowledged that the circuit breaker’s “magnetic effect” intensified panic and that its negative effects outweighed its positive effects. The three exchanges jointly issued a notice on the evening of January 7 suspending implementation from January 8. The circuit breaker became one of the shortest-lived systems in A-share history, and the regulator’s credibility was called into question; CSRC Chairman Xiao Gang was removed from office the following month.

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