China Capital Markets Research

Jan

China’s Circuit Breakers ineffective against the market turbulence. Have the regulators implemented the right market measures?

It will come as no surprise to the avid watchers of the Chinese stock market that China’s start to 2016 has not been a success by any means. The CSI 300 index of blue chip stocks plummeted by 5% on Thursday 7th January, prompting the newly implemented circuit breakers to…

Jan

China Capital Markets Research

Recent development of the situation in the stock market presents opportunities for investors and regulators

The RMB-USD exchange rate has two different values: the onshore value, determined by the PBOC at markets opening, and the offshore value, which is market-driven and used in Hong Kong. These two rates were usually almost identical, until August 2015 when a surprise depreciation by the Chinese central bank caused an…

Jan

China Capital Markets Research

New circuit-breaker rules have been tested already, but are they a solution for market volatility?

When the Shanghai Stock Market first opened after the New Year’s holiday, everything quickly turned for the worst: a fast, large rout emerged, with the CSI300 Index losing 5 percentage points by 1 am. Then it stopped for 15 minutes, as trades were paused. After the break ended, the index kept…

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China Capital Markets Research