USA Today: Don't blame 'circuit breakers' for China's woes
China "set the controls too tight," said Bill Witherell, chief global economist with Cumberland Advisor, a $2 billion money management firm. This created "an incentive for anyone thinking of selling to jump in and sell right away so they won't get shut out."Except China still limits daily moves to 10%, so what is the point of a circuit breaker? The most the market can drop in one day is 10%, and they shut it at 7%. The U.S. market does not shut for the day unless stocks fall 20%.
China's regulators should have modifed their circuit breakers to account for wider swings, Witherell said.
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