China: Suspended use of ‘circuit breakers’ – Investec

FXStreet (Delhi) – Research Team at Investec, notes that the Chinese regulators suspended use of ‘circuit breakers’ that had seemed to become akin to waving a red rag to a bull.

Key Quotes

“After less than one week, and two 7% drops, the end of these loss-capping levels saw a calmer session last night, albeit due to reports of Chinese state owned companies supporting the market by buying stocks. This also saw the Chinese Yuan recover a little much to the disappointment of Panda bears, with the People’s Bank of China ending an 8 day run of weaker Yuan fixes.

The relative calm saw S&P futures recover in the US after the cash index fell over 2% yesterday, capping the worst ever start to a year as Fed policy tightens and Chinese stock slides caused risk aversion.”

Research Team at Investec, notes that the Chinese regulators suspended use of ‘circuit breakers’ that had seemed to become akin to waving a red rag to a bull.

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