Hello, on 20 16 1.7, Shanghai Stock Exchange, Shenzhen Stock Exchange and CICC issued a document to suspend the implementation of the relevant regulations on index fuse from 1.8. During the four days when the system was only running, A shares plunged 65,438+on June 4th and June 7th, touching the fuse.

The following is the CSRC's response to the fuse mechanism;

The main purpose of introducing the index fuse mechanism is to provide a "cooling-off period" for the market, avoid or reduce hasty decisions under large fluctuations, and protect the legitimate rights and interests of investors, especially small and medium-sized investors; The effect of suppressing programmed trading to help rise and fall; Provide emergency response time to deal with technical or operational risks. The fuse mechanism is not the main reason for the market crash, but judging from the actual fuse situation in the last two times, it has not achieved the expected effect. The fuse mechanism has a certain "magnetic attraction effect", that is, some investors trade in advance when they are close to the fuse threshold, which leads the stock index to reach the fuse threshold at an accelerated rate, which has contributed to the decline. Weighing the pros and cons, the current negative effects outweigh the positive effects. Therefore, in order to maintain market stability, the CSRC decided to suspend the fuse mechanism.