A draft regulation from the China Securities Regulatory Commission would suspend stock trading on the mainland for half an hour whenever the benchmark Shanghai Composite Index rose or fell by 5%, with the market suspended for a full day should it go up or down by 7%, The Guardian reported. According to Tuesday’s draft plan, the circuit-breaker mechanism would help prevent “excessive reactions of investors”. In another bid to stabilize the markets, the commission and the Ministry of Finance announced that Chinese investors who hold their stock for over a year will be exempt from a 5% dividend tax.
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