CIO, CLSA slam HKEx circuit-breaker plan
Hong Kong's exchange has proposed circuit breakers for curbing extreme share-price moves, but the CIO at a big fund firm and CLSA's head of trading have criticised the idea.
Share price circuit-breakers proposed by Hong Kong’s bourse will damage the city’s free-market credentials if they are approved, market players have warned.
Hong Kong Exchanges and Clearing (HKEx) is considering introducing a mechanism whereby a five-minute ‘cooling-off period’ is triggered if a stock price moves more than 10%. Futures contracts would be limited to a 5% swing before the cooling-off period was triggered.
But the chief investment officer at a large long-only fund …
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