The A-share circuit breaker happened in 2016.

On January 4, 2016, A-shares officially introduced the circuit breaker mechanism; as of January 7, in four trading days, the circuit breaker mechanism was triggered four times in a row, with the Shanghai Stock Exchange Index falling -11.96% and the Shenzhen Stock Exchange Index falling -15.16 %, the GEM index fell -16.93%, the GEM index hit its largest weekly decline in history. The market was once filled with grief, and many people stopped the circuit breaker mechanism.

Introduction

In fact, the circuit breaker mechanism originated in the United States and is an imported product. The United States also reflected on the disaster caused by the huge market fluctuations caused by the current circuit breaker mechanism after the circuit breaker was triggered in 1997. Although the market systems are different, the focus on the circuit breaker mechanism is almost the same.

Monday, October 27, 1997. The Dow Jones Industrial Average plummeted 7.18% to close at 7161.15 points, its largest decline since 1915. This day was also the first time the circuit breaker mechanism was triggered after its introduction in 1988. At 2:36 p.m., the Dow Jones fell 350 points, triggering a circuit breaker in the stock, warrant, and index futures markets at the same time. The circuit breaker lasted for 30 minutes. Trading resumed at 3:06 p.m., but the stock index continued to fall, triggering a second circuit breaker at 3:30 p.m., which lasted until the close. The next day, October 28, the Dow Jones Industrial Index rebounded sharply by 337.17 points, or 4.71%, to close at 7498.32 points.