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China securities regulator: won't re-introduce circuit breaker in next few years

Shareholders observe the stock market at a stock exchange corporation in Nantong, China.
ChinaFotoPress | Getty Images
Shareholders observe the stock market at a stock exchange corporation in Nantong, China.

China won't reintroduce the circuit breaker mechanism in its stock markets in the next few years, Liu Shiyu, chairman of the China Securities Regulatory Commission, told reporters in Beijing on Saturday.

A circuit breaker mechanism introduced in January by Liu's predecessor Xiao Gang was dismantled after only a few days. The mechanism was blamed by investors for worsening a sharp selloff in Chinese stocks.

China's Shanghai and Shenzhen stock markets slumped as much as 40 percent in just a few months last summer.

Liu, previously the chairman of the Agricultural Bank of China, was named the new chief of China's top securities regulator in February.

Earlier in February, Premier Li Keqiang offered a rare public criticism, stating regulators didn't respond adequately, or react in a timely way to the stock market turmoil.

Saturday's press conference was the first occasion for the new securities regulator chief to answer questions from reporters.