China's securities regulator said on Tuesday that a newly-introduced stock market 'circuit breaker' that kicked in on Monday helped calm markets and protect investor interests, although the mechanism needs to be further improved.
"The circuit breaker is an entirely new mechanism and there's no experience (with such things) in China.
The market needs some time to gradually adapt to the new rules," the China Securities Regulatory Commission said on its official microblog.
China's stock market plunged on Monday, triggering the circuit breaker for the first time. It halted trade for 15 minutes after the CSI300 index fell 5 per cent, then suspended trade for the remainder of the day when the index dropped 7 per cent.
The image is used for representational purpose only. Photograph Reuters
