China will launch a stock index circuit breaker next year, according to media reports, as policymakers attempt to shore up investor sentiment still creaking from a summer rout.
Beijing-based media publication Caixin reported the news on its Mandarin website early Thursday, saying the new measure would go into effect after January 1. No further details were given.
The report, which has yet to be confirmed by Beijing, harmonize with earlier statements made by China's securities watchdog. In September, officials announced they were drafting plans to employ the circuit-breaker mechanism but didn't mention a timeline.
A circuit breaker refers to measures put in place to avert panic in markets by putting temporary halts or a freeze in trading if, for instance, the index in question falls by a pre-determined level.