Trading in China suspended for second time after shares plunge 7%

China has halted stock market trading for the second time this week after a sharp drop in share prices.

Trading was suspended less than half an hour after markets opened on Thursday after shares plunged by 7%, triggering a “circuit breaker” recently introduced by China.

The mechanism automatically shuts down the market for the day if an index of major stocks falls below a certain point, in a move intended to prevent panic sell-offs and volatility.

It is one of a number of responses introduced to China in response to the continued depreciation of the yuan, which has sent stocks tumbling.

Today’s early close to the market comes after trading was suspended early on the first trading day of 2016 after a 7% fall.

China has also banned major shareholders from selling off more than 1% of a company’s listed shares within three months under new rules which are also intended to stave off a potential market crash.

Investors have responded with anger to the changes, with some suggesting they could be having the opposite effect to that intended.

Alberto Forchielli, the founder of Mandarin Capital Partners, said the limit to share sales was “crazy”.

Another stock owner said that he was trapped by the early market closes, which he said was “killing investors” and sparking panic in the markets.

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