The Year 2016 starts with the huge volatility in the second largest economy- China. Apart from the China issue, free fall of oil price increases the worries on Global economy. The extreme volatility was experienced in FX, equity as well as commodity markets. Since 4 January, the two-threshold circuit breaker has been triggered four times in China stock market due to large sell-offs, and resulting in earlier closing on two trading days. After such a free fall, CSRC announced to suspend the circuit breaker from January 8, 2016. 

As per the rules, a 5% increase or decrease in the CSI 300 Index, a gauge of 300 A-share stocks listed on China's two stock exchanges, triggers a 15-minute trading halt in stocks, options and index futures; a move of 7% results in the market being closed for the rest of the day.

When stock market crashed in July 2015, six month ban was there. It was set to expire in January 8, 2016. In light of the market turmoil, the CSRC imposed a limit on the amount of stock large shareholders can sell. Effective from 9 January, large shareholders can only sell up to 1% of owned company shares every three months, with a disclosure period of 15 working days.