Advanced Search

The story appears on

Page A10

September 9, 2015

GET this page in PDF

Free for subscribers

View shopping cart

Related News

Home » Business » Finance

Shares rally on circuit breaker news

By Ji Xiang | September 9, 2015, Wednesday | Print Edition

SHANGHAI stocks rose yesterday as investors turned optimistic over the possible launch of an index circuit breaker system that is set to prevent sharp drops and surges.

The Shanghai Composite Index rose 2.92 percent to 3,170.45 points.

The Shanghai and Shenzhen stock exchanges said late on Monday that they began soliciting public opinion on an index circuit breaker system, which would suspend trading temporarily in times of substantial surges and tumbles.

The circuit breaker system, similar to one practiced in the United States, will be triggered when the index rises or falls by 5 percent with share trading to be suspended for 30 minutes.

If the index changes by 5 percent after 2:30pm, or if the index surges or slumps by 7 percent, trading would be suspended until 3pm — the closing time for daily trading, a draft said. The breaker will be triggered once at most in a single trading day.

The exchanges will collect feedback on the draft until September 21.

Sinolink Securities said the index circuit breaker system may help investors be more rational in trading as they are given more time to ponder over gains or losses.

The Ministry of Finance also said on Monday that it would remove personal income tax on dividends for shareholders who hold stocks for over a year, in a move aimed at encouraging longer-term investment in equities as opposed to short-term speculation.

It would halve the tax on dividends for those holding shares between a month and a year. Full tax payment will be required for shareholders who hold shares for less than a month. The changes came into effect yesterday.

China Citic Bank surged 7.01 percent to 6.26 yuan (98 US cents), China Merchants Bank rose 3.03 percent to end at 16.65 yuan, and China Everbright Bank gained 2.98 percent to close at 4.15 yuan.

FinanceSHANGHAI stocks


 

Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend