Trading halted for the day after shares fall 7% in opening minutes

(CHINADAILY)ChineseequitiesdivedonThursdaymorning,triggeringthe7percentcircuitbreaker,whichhaltedtradingofequities,indexfuturesandoptionsfortheremainderoftheday.

Inlessthan30minutesafterthemarketsopened,theCSI300Indexplungedby7percent,afterresumingfroma15minutetradinghaltwhenittriggeredthefirsttradinghaltat9:42am.

ThebenchmarkShanghaiCompositeIndexdivedby7.32percent,headingtowardanearlyclosureat3,115.89points.ThesmallerShenzhenComponentIndextumbledby8.35percentwhilethestart-upboardChiNextretreatedby8.66percent.

ThemarketstampedeonThursdaysparkedgrowingcriticismofthenewlyintroducedcircuitbreakermechanismwhichhasbeenseenasafactorthatmagnifiedmarketvolatilities.

"Clearly,thetightstopsof5and7percenthasthemagneteffectaspricesgravitatetowardsthebreakerandpromptsastampedethatdrainsmarketliquidity,"HongHao,chiefstrategistatinvestmentbankBOCOMInternationalsaidinresearchnote.

TheChinaSecuritiesRegulatoryCommissionsaidearlierthatitwillimprovethecircuitbreakersystembasedonrealmarketoperation.