The CSI 300 was suspended after a 7% fall triggered China’s January 7, 2016 circuit breaker.
The CSI 300 tracks 300 large companies listed on the Shanghai and Shenzhen stock exchanges. China introduced market-wide circuit breakers in January 2016, using the index’s movements to halt trading after declines of 5% and 7%.
On January 4 and January 7, the new mechanism halted trading after sharp falls. Critics argued that the 5% threshold could encourage investors to sell before a halt, intensifying rather than calming panic. China suspended the circuit-breaker system after only a few days.
The episode formed part of the 2015–16 Chinese stock-market turbulence, which followed a rapid rise and steep decline in mainland share prices. The CSI 300 is distinct from the Shanghai Composite, which covers a different set of shares.