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Friday, 08 January 2016 - 17:19
Chinese shares rise in volatile trade
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Chinese shares have risen on the first day of trade since the lifting of a "circuit breaker" mechanism, which had been introduced to prevent sharp falls.

The Shanghai Composite opened more than 2% higher, then quickly turned negative, before rallying again to close 2% higher at 3,186.41.

Regulators stepped in after big losses in the mainland markets had led trade to be suspended twice this week.

The falls in China have affected markets around the world.

On Thursday, markets in Europe and the US recorded steep losses after trading in China's stock markets closed within the first 30 minutes, making it China's shortest trading day on record.

Regulators step in

After a volatile trading session, China's stock markets closed higher as investor confidence grew on the new measures introduced by authorities.

Regulators suspended the "circuit breaker" rule late on Thursday. Analysts said it was creating more panic selling instead of calming sentiment.

The central bank also firmed up the value of China's currency, the yuan, to calm markets. The share sell-off this week came amid fears that the weakening of the yuan meant China's economy was slowing more than expected. (BBC)

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