Regulators had to step in to balance the situation after trade was suspended twice in this week, causing major losses for China and also European and US markets.
The circuit breaker rule meant to reduce losses in trading eventually led to more losses as investors became pressurized to get rid of their stock. The rule has now been repealed and the yuan has been firmed up, settling down investor concerns and giving a boost to the market.
When the Shanghai Composite opened, it was higher by more than 2%. It later turned negative, coming back soon to 3186.41 before closing.
The measure will be a short reprieve for global investors who have been suffering greatly due to China’s falling performance and falling oil prices.