International Journal of Social Science & Economic Research
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Title:
CIRCUIT BREAKERS AND MARKET QUALITY: EVIDENCE FROM CHINA

Authors:
Chenhan Ruan , Jie Liu, , Gengyuan Liu

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Chenhan Ruan1 , Jie Liu2, , Gengyuan Liu1
1. Peking University, Guanghua School of Management, China
2. Fujian Agriculture and Forestry University, School of Economics, China

MLA 8
Ruan, Chenhan, et al. "CIRCUIT BREAKERS AND MARKET QUALITY: EVIDENCE FROM CHINA." Int. j. of Social Science and Economic Research, vol. 4, no. 5, May 2019, pp. 3597-3604, ijsser.org/more2019.php?id=271. Accessed May 2019.
APA
Ruan, C., Liu, J., & Liu, G. (2019, May). CIRCUIT BREAKERS AND MARKET QUALITY: EVIDENCE FROM CHINA. Int. j. of Social Science and Economic Research, 4(5), 3597-3604. Retrieved from ijsser.org/more2019.php?id=271
Chicago
Ruan, Chenhan, Jie Liu, and Gengyuan Liu. "CIRCUIT BREAKERS AND MARKET QUALITY: EVIDENCE FROM CHINA." Int. j. of Social Science and Economic Research 4, no. 5 (May 2019), 3597-3604. Accessed May, 2019. ijsser.org/more2019.php?id=271.

References
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[6]. Gomber, Peter, et al., "The Effect of Single-stock Circuit Breakers on the Quality of Fragmented Markets," International Workshop on Enterprise Applications and Services in the Finance Industry. Springer, Berlin, Heidelberg, pp.71-87, 2012.
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Abstract:
Circuit breakers were triggered four times in Chinese stock market in 2016 and provided a valuable opportunity to empirically examine the impacts of circuit breakers on market quality. By comparing price movement, liquidity and market efficiency in the days when circuit breakers were triggered with the time-matched benchmark and the return-matched benchmark, this letter investigates the negative effects of circuit breakers. Empirical results suggest that circuit breakers failed to improve the market quality and brought huge welfare losses to investors.