The decision to scrap the index circuit breaker looks to be a return to pragmatism, but more is needed to convince investors of the “decisiveness” of market forces.
The securities regulator announced the decision last night amid mounting criticism and plunging share prices, admitting that the mechanism had failed in its objective.
Beijing continues its efforts to dampen stock market volatility, amid investor skepticism about the likely effectiveness of new measures that were proposed in September.
Fund managers, already concerned about Beijing’s intervention in the stock market, won’t welcome a proposed index circuit breaker.
China's wild market ride could benefit foreign managers using mutual recognition as domestic retail investors look for global allocation, according to a market-watcher.
Deutsche Asset & Wealth Management and Harvest Global Investments plan to list the exchange-traded fund in Europe, initially in London. January 16 is said to be the target date.