Wednesday night/ don’t panic (?)

News came in on Wednesday night of a second circuit-breaker induced trading halt on the Chinese stock exchange on Thursday, with the index down 7% for a second time this week.   Some people say the circuit-breakers are counter-productive, and that the stock market should be left to its own devices, to find a bottom.   And what will happen on Friday? Will the circuit-breakers halt trading for a third time?  We will all have to wait and see.  And not panic. As Steve Mollman and Jennifer Timmons note in this article : in China’s volatile market a 5% drop or jump isn’t uncommon in a normal trading day.  In the USA we say the market is ‘sharply down’ when it is down 2%.

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‘China’s new stock market circuit breaker is broken—and investors are panicking’, says Steve Mollman and Heather Timmons in an article.

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