China will suspend the newly implemented circuit breaker rules for the Shenzhen and Shanghai stock exchanges that came into place this week, as of Friday. On Thursday the circuit-breaker system kicked it when the index fell by 7 percent within minutes of the bourse opening. Share Cast reports: The new circuit breakers, which kicked in on Monday, have been criticised by analysts for exaggerating declines as investors rush to exit positions before getting locked in by the halts. Market participants said the move was good news as it removed the element of fear from trading. “At last, some positive news out of China. The authorities seem to be learning the lesson that it’s better to let the markets do their thing rather than micro-manage,” said SpreadCo analyst David Morrison. “Trading halts can actually exacerbate downside moves as would-be buyers are unable to come in and buy beaten-up stock. Rather, the halts add to panic as investors line up to sell to avoid being repeatedly locked out of the market. There can be little doubt that a 7% circuit-breaker was too tight for the volatile Chinese markets. However, it’s unlikely that this will magically calm them, but at least we’ll find [...]