| Circuit Breaker was a price limit mechanism which come from America,the purpose of reducing the market volatility,cooling the market sentiment,preventing the excessive market reaction and avoiding the uneven stock market.The Circuit Breaker of China’s securities market was set up on the basis of the experience of the foreign securities market,and be implemented formally on January 1 of 2016.However,4 days after the implementation of the Circuit Breaker,it had hit the fuse for the 4 time.In order to prevent the further decline in China’s share price,Shanghai Stock Exchange had suspended the implementation of the Circuit Breaker overnight on January 7th.In spite of only a few days,it had made a significant impact on China’s stock market.Research the effectiveness of the Circuit Breaker in China’s securities market was helpful for us to understand the price limit mechanism on securities market and analysis of the Problems in China ’s Securities Market.It was of great significance to establish the price limiting mechanism in China’s securities market and maintain the orderly and healthy development of the securities market.Starting from the origin of Circuit Breaker,the paper will introduce its origin and development process,and make a comparison of the bond market rules in all countries.Then it will expound the rules of the A share market in China,combine the China’s A share market from January 4,2016 to January 5,2016,and analyze the stock price volatility and the trading volume as well as the fluctuation velocity of stock yield in CSI 300 Index,so as to verify the effectiveness of Circuit Breaker in A stock market in China.Research indicates that the Circuit Breaker in China’s securities market did not play a corresponding role and the price restrictions caused the market volatility.Finally,it will compare the difference of Circuit Breaker between China and the developed countries in other countries,and put forward some suggestions to improve the Circuit Breaker. |
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